Flinders completes initial study for Pilbara iron-ore project

18th January 2011
PERTH: Iron-ore developer Flinders Mines on Tuesday reported that the prefeasibility study (PFS) into its Pilbara iron-ore project, in Western Australia, has confirmed the project’s strong economics.
The developer said in a statement that the A$488-million first stage development of the project could produce around five-million tons a year of ore, with design and construction scheduled to start in the first quarter of 2012.

First production was scheduled in early 2014 from the main Blacksmit tenement, which was one of two close-proximity tenements in Western Australia.
Boosting the output to 15-million tons a year during the stage two growth strategy would cost a further A$640-million, Flinders said. However the PFS has proven that Flinders had the option of moving immediately to the higher output, from mine start-up.
“The outcome of the PFS demonstrates a robust investment case and certainly underpin the potential for Flinders Mines to move to a definitive feasibility study,” said CEO Gary Sutherland.
“The PFS findings are comprehensive, they confirm that the Pilbara iron-ore project is economically viable, and reinforces our determination to become a substantial producer of iron-ore from the Pilbara.”
He added that should the project’s economic output be rated against the iron-ore mine volumes in Western Australia, the 15-milion ton a year objective for the Pilbara operation would rank Flinders as one of the top ten Australian iron-ore producers.
The Pilbara project has an indicated and inferred resource of 784-million tons, at an average grade of 55,4% iron.
The PFS found that the project could be commercialised by producing two fines products comprising direct shipping ore (DSO) and a detrital iron deposit, which would require more beneficiation before export.
The mine would produce more than 229-million tons of final fines product, over an estimated life-of-mine of 20 years.

Edited by: Mariaan Webb