BC Iron Limited

Published : May 28th, 2009

North West Iron Ore Alliance Congratulates BC Iron on Landmark Deal with FMG

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North West Iron Ore Alliance (NWIOA)

 

 

MEDIA RELEASE                                                                                       28 May 2009

 

NWIOA CONGRATULATES BC IRON ON LANDMARK DEAL WITH FMG

 

The North West Iron Ore Alliance (NWIOA) congratulates its member company, BC Iron Limited (BCI), on today’s announcement of an agreement with Fortescue Metals Group (FMG) that will enable BCI to commence construction at its Nullagine Iron Ore project in the Pilbara this year.

 

BCI will develop the Nullagine Iron Ore Project by of use FMG’s infrastructure network, which includes a Pilbara railway, port handling and ship loading facilities at Port Hedland.

 

Deputy Chairman & Chief Executive of the NWIOA, Dr Justin Walawski, said the agreement with FMG was a significant milestone for both BCI and the junior iron ore sector more broadly.  “BC Iron has entered into this agreement because it provides a haulage solution, not just access, and a significantly quicker path to production and therefore early cash-flow” Dr Walawski said. “BCI’s Managing Director Mike Young and his team must be congratulated.”

 

“In a broader sense, the deal is a positive but sobering reminder about the importance of reliable rail options for many emerging producers in the Pilbara region.  BCI is one of a select few that have reached agreement with rail infrastructure owners for the transport of their ore - it’s critical now that the Pilbara Rail Access Interdepartmental Committee (PRAIC) deliver similar outcomes for the broader group of iron ore juniors in the Pilbara.”

 

As a founding member of the NWIOA, BCI was to ship approximately 5 million tonnes of ore a year through a new multi-user inner harbour export facility at Port Hedland, of which the NWIOA has a 50 million tonne per annum allocation.  Dr Walawski said BCI intended remaining a member of the NWIOA albeit that it would no longer require this allotment.   However, other members in the NWIOA and/or other companies in the region will easily absorb this capacity.  “Essentially, BCI’s deal will not impact on the development of our own port facility and the freed up capacity will be easily absorbed.  Importantly, the NWIOA’s port project remains on track for completion in 2013, with pre-feasibility studies soon to commence following a successful scoping study finalised in March this year,” said Dr Walawski.

 

BCI’s Managing Director Mike Young said the company would remain an active member of the NWIOA. “We are extremely pleased with the NWIOA’s progress to date and continue to support its objectives of benefitting the community and developing infrastructure solutions in the Pilbara,” said Mr Young.

 

Media Enquiries:

Dr Justin Walawski                                                                                     

E: justin.walawski@nwioa.com.au

P: (08) 9389 3021

M: 0400 933 332

 

 

 

 

 

Background on the North West Iron Ore Alliance

 

The North West Iron Ore Alliance was formed in 2007 to promote the development of a junior iron ore sector in the Pilbara. The member companies – Atlas Iron Ltd, BC Iron Ltd, Brockman Resources Ltd and FerrAus Ltd cooperate on issues such as infrastructure development and access, statutory approvals and community development. 

Collectively the members of the North West Iron Ore Alliance have the potential to deliver over 55 million tonnes of iron ore per annum by 2013, generating approximately $200 million in new State royalties per annum.

Since its formation in 2007, the Alliance has been actively seeking public policy settings that facilitate the development of a junior iron ore sector in the Pilbara, especially regarding fair and equitable access arrangements for rail and port infrastructure.

 

Atlas Iron Limited - www.atlasiron.com.au

Atlas Iron (ASX: AGO) has one of the largest land holdings in the Pilbara region covering over 9,600km2. The Company commenced production of direct shipping grade iron ore (DSO) from its Pardoo Project, 75km from the public access port at Port Hedland, in October 2008 and commenced iron ore exports in December 2008.  Targeting production of 1 million tonnes per annum in its first year of operation, Atlas is forecasting its production at Pardoo will grow to 3 million tonnes per annum by 2010.  Together with planned production from Abydos, Atlas is targeting 12 million tonnes of annual production by 2012.

 

BC Iron Limited - www.bciron.com.au

BC Iron (ASX: BCI) is focused on the exploration and development of channel iron deposits within its Nullagine Project in the Pilbara. The Nullagine Project hosts a Direct Shipping Ore (DSO) resource of 50.7Mt @ 57% Fe (64.8% Fe) within an overall Channel Iron Deposit (CID) resource of 89Mt @ 54% Fe. In July 2008 the Company completed a Scoping Study for an initial 3Mtpa DSO operation at Bonnie Creek, and on the strength of the positive results has commenced a Feasibility Study on the Nullagine Project, exploring both a 3mtpa operation and a low capital cost 1.5mtpa start-up operation, with options offering the potential to underpin a high-value, long-life iron ore business for the Company.  In February 2009 BC Iron signed an offtake agreement with Australian-based metals trading and investment house, Tennant Metals, for up to 50% of BC Iron’s future iron ore production (commencing at 1.5Mtpa).

 

Brockman Resources - www.brockmanresources.com.au

Brockman Resources Limited (ASX: BRM) is focused on the exploration and development of its 100%-owned Marillana Project, located 100km north of Newman in the Pilbara.  The Marillana Project has total Mineral Resource of over 1.6 billion tonnes of iron ore, with a total estimated shipping inventory of over 950Mt of final product grading 57.4-60.0% Fe (DSO + Beneficiated Haematite). The Company is currently targeting a 15 ‑ 25Mtpa mining operation with a forecast mine life of up to 40 years, with initial production targeted for 2012.

 

FerrAus Limited - www.ferraus.com

FerrAus Limited (ASX: FRS) is an emerging developer of iron ore and other ferrous raw materials. It has a strategic foothold covering over 560km2 in an under-explored, highly prospective new iron ore sub-province in the East Pilbara region. In December 2008 the Company announced a major increase in the iron resources at its East Pilbara projects to 150.1 million tonnes grading 58.7% Fe. Mine development and infrastructure evaluation studies for 2-5Mtpy and >10Mtpy production scenarios were completed during the last quarter of 2008. FerrAus has recently upgraded its iron ore exploration target to 350-450 million tonnes.

 

READ CORPORATE
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T: (+61-8) 9388-1474 | F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au 

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BC Iron Limited

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BC Iron is a development stage company based in Australia.

BC Iron develops iron in Australia.

Its main asset in development is NULLAGINE IRON in Australia.

BC Iron is listed in Australia and in Germany. Its market capitalisation is AU$ 90.3 millions as of today (US$ 58.7 millions, € 54.8 millions).

Its stock quote reached its highest recent level on March 07, 2014 at AU$ 4.87, and its lowest recent point on February 05, 2016 at AU$ 0.08.

BC Iron has 392 529 984 shares outstanding.

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