JWD is progressing on multiple fronts with the key remaining approval documentation planned to be submitted by the end of the month.
The Yarram project completion timeframe has been extended and planning works are well underway.
Strong market fundamentals
FEL is determined to bring the projects to production as soon as possible with strong current market conditions and positive future fundamentals.
Prices remain high and are expected to remain so after China’s new 15-year plan was outlined recently providing strong optimism for FEL and the industry as a whole.
The company is also putting in place a talented team with experience in the iron ore industry to bring its production plans to fruition.
“Pushing projects along”
FEL executive chairman Tony Sage said: “We are pleased with the progress made at JWD and look forward to completion of the Yarram transaction shortly so we can commence work on the ground there.
“Our experienced team is familiar with what is required to bring this style of project into production.
“We are pushing the projects along as fast as we can as iron ore markets remain very strong, so we are striving to take advantage of the demand that exists for high-quality product such as that envisaged to be produced from these projects.”
JWD works approval application
At JWD, the company’s key focus is preparing the works approval application for submission, which is the last remaining primary environmental approval required to facilitate commencement of works on site.
The advanced status of approvals leverages off work performed previously by GWR Group Ltd.
The works approval application is expected to be submitted to the Department of Water and Environmental Regulation (DWER) by the end of this month and will take about three months to process.
The additional workstreams conducted for JWD include:
➢ Mine planning
- Pit optimisations, updated pit designs and mine schedules are focused on producing a premium lump and premium fines product and maximising early cashflow; and
- Updated mine plans demonstrate the ability for the project to produce a more than 62% iron premium product for both the lump and the fines.
➢ Review of historical metallurgical test-work and steel making properties
- This reveals a high propensity for JWD to produce a high-quality lump (+ 65% lump generation); and
- Results of the review are being used for integration into mine planning, product strategy and marketing.
➢ Review of road haulage routes and allowable road train configurations
- Identified as a key focus area as haulage represents more than half of the C1 Cost for JWD; and
- The haulage route also has an influence on capital, which it aims to keep to a minimum.
➢ Discussions are progressing on different port options, with the focus being Geraldton Port.
➢ Contractor engagement - Working with potential contractors on mining, crushing and screening, and haulage, with a view to updating cost estimates and formulating a fit-for-purpose, low capex, accelerated execution strategy.
➢ Marketing - Engaging with potential customers, including funding opportunities for the provision of working capital facilities to assist in the ramp-up.
Site visit to Yarram
Planning work for resource drilling has commenced and with the restrictions on interstate travel from Western Australia to the Northern Territory lifted from November 14, a site visit is planned in the coming weeks.
This will allow FEL to accelerate its stakeholder engagement regarding the project.
The original period for satisfaction of the conditions precedent on this acquisition expired on November 16 and has been extended for a further 35 days.
The company completed due diligence to its satisfaction and is working with the vendor to achieve the key outstanding approval from the underlying tenement holder, which cannot be unreasonably withheld as per the iron ore rights Heads of Agreement.