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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Relations Corporate Communications
T: (+61-8) 9388-1474 | F:
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