Japanese blue-chip trading company, Mitsui & Co., Ltd will be participating in a feasibility study of the Hawsons Iron Ore Project in Broken Hill in New South Wales, which is managed by Carpentaria Resources Limited (68.7 per cent) and Pure Metals (31.3 per cent).
Mitsui will take on 20 per cent of the feasibility study costs necessary for the Hawsons Iron Ore Project in exchange for the option of acquiring off-take rights to collect 20 per cent of production quantity when officially commercialised.
The project is a new development in an undeveloped mining area located near Broken Hill, New South Wales, Australia, and aims to produce approximately 10 million tonnes of high-grade ore per year. It is expected that the project will help meet the demand for the high-grade magnetite iron ore, forecast to be in tight supply worldwide.
Mitsui has commented that the iron ore produced is expected to have “low production costs and be highly competitive in price” as it is uniquely soft ore.
“By contributing to the stable supply of high-grade iron ore, which is expected to see increased demand and has a low environmental impact, Mitsui will respond to the needs of customers. Mitsui also aims to strengthen functionality in iron-ore trading through the acquisition of off-take rights,” the company announced.
Hawsons Iron Ore project is located just 60 kilometres south-west of Broken Hill, with access to existing infrastructure in terms of rail, road, port, power and water capable of sustaining initial planned production of 10 million tonnes per annum.
Carpentaria Resources’ Managing Director, Quentin Hill, said Mitsui’s financing provided a major vote of confidence in Hawsons as the world’s leading high-quality iron ore concentrate/pellet feed project.
“We are delighted to welcome Mitsui to the project, given its status as one of the largest international investors in Australia’s resources industry, including major iron ore developments,” Mr Hill announced, “this investment confirms Hawsons’ position as the world’s leading undeveloped high-quality iron ore project and supports our view that the Hawsons can satisfy the demand from customers in the high quality, high-value and high-growth iron ore markets of direct reduction iron (DRI) and pellet feed.”
Mr Hill further stated that the financing reduces several project financing risks as well as enhances the project’s bankability.
“This model is highly beneficial to CAP shareholders, as it avoids dilution, addresses key project delivery risks and adds significant value to the project. We have a clear plan for development that is on track and we will continue to pursue non-dilutive arrangements where possible,” he said, “we now expect our current discussions with blue-chip off-takers and fund managers to accelerate ahead of securing the remaining BFS funding and develop Hawsons into a major new mine.”
The Hawsons bankable feasibility study (BFS) is targeted to be completed within the next 12-15 months.
More information on this project can be found here.