Magnetite Mines announced in November 2013 (click here for details) it has entered into collaboration with Braemar Infrastructure Pty Ltd (BIPL) to develop an open user infrastructure solution for the Razorback Iron Project.
The collaboration will see BIPL build, own, and operate an infrastructure business that provides slurry pipeline transport, water, power, communications, and access road to the Razorback Iron Project. This infrastructure will be open to third party use. Magnetite Mines, as a foundation partner in the collaboration, will receive preferential treatment on both access and access pricing. On the basis of two users, the second being BIPL’s subsidiary Braemar Iron Pty Ltd, outsourcing this infrastructure is financially very positive for the project.
One of the early attractions of the Razorback Iron Project was its access to existing, open-user rail and conventional port. Analysis of the OPEX and CAPEX required to use the rail indicated that the slurry pipeline option is a lower OPEX alternative to rail. Compared to rail, slurry has reduced rehandling requirements (up to four less), reduced ancillary equipment requirements (slurry does not require product stockpiles and stacker-reclaimers at both the mine site and port, rail car unloader, conveyor belts, and ship loader), reduced OPEX (about a fifth the cost of rail transport), and reduced capital guarantee requirements (rail will require capital guarantees for rolling stock and passing loops). The slurry pipeline option also obviates the need to build a spur rail line to the mine site and a conveyor belt easement through Port Pirie.
Importantly, the slurry pipeline option is environmentally attractive from a dust, noise, traffic, and aesthetic perspective.
The preferred pipeline route is to the Myponie Point area, approximately 10 km north of Wallaroo.
The Infrastructure Project is a multi-user facility that will receive iron concentrate produced by iron ore mines and deliver it to a floating processing, storage and offloading facility located in Spencer Gulf, where concentrate will be received, filtered, stored for loading onto ships for export.
Updated November 2013