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High iron ore price tempts more Australian producers

• Monday, July 27, 2020
• Source:ferro-alloys.com

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• Keywords:High iron ore price，Australian producers

[Ferro-Alloys.com] Western Australian (WA) iron ore developer Strike Resources plans to start shipping lump and fines from its Paulsens East iron ore project in the Pilbara next year, as a strong price environment reignites interest in developing smaller iron ore projects.

 

Strike expects to formally a sign a mining agreement with the native title holders covering the Paulsens East project on 14 August, with both sides already agreeing in principle to a draft document. This should allow the firm to move forward with the development of the direct shipping mine, which is expected to produce 1.5mn t of lump and fines over a four-year mine life.

 

Australia has many small iron ore mining projects that can begin production reasonably quickly in response to a high price environment. Each is small scale but combined they can add around 10mn t/yr of iron ore exports out of Australia, assuming they can gain access to port infrastructure.

 

Paulsens has options to access the WA ports of Onslow and Dampier, with the WA government keen to support smaller enterprises to reduce the state's reliance on the big four iron ore mining firms in the Pilbara — BHP, Rio Tinto, Fortescue and Roy Hill.

 

The initial 2mn t out of Paulsens would be around 62pc Fe, with an extension containing ore of around 60pc Fe.

 

Source: Argusmedia

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