Sabine
The reason why I mention Iron Bridge often is because I think it could be the harbinger of a huge shift in Australia's iron ore mining sector towards magnetite ore, rather than the haematite ore that now rules the roost. The sequence of preference in iron ore mining.
Channel iron deposits (CIDs) are easy to mine, so that is what miners went for first. Then they went for haematite direct ship ores – first above-water-table deposits, the under-water-table deposits. The next in line is magnetite.
Magnetite needs heaps of beneficiation, mainly to remove silicate, and this extra cost has favoured haematite DSO. The problem is, in coming decades haematite DSO is going to struggle to meet demand, so the next in line is magnetite, and Australia has a huge quantity of magnetite. Also, magnetite benficiation processes have improved dramatically over the last decade.
Benefciated magnetite is the best iron ore, and it is highly prised in China. Google the topic if you want to know more. Until now, magnetite adventures in Australia have not been an unqualified success, and the two in WA have been financial disasters.
What makes Iron Bridge more interesting for NWH than before, is the RCR acquisition. Benefication means more ore processing, and that is RCR's metier. Also, if NWH can develop a reputation in magnetite processing, RIO, BHP and other miners will come tapping at the door, IMO. That link at
http://australianminingreview.com.au/the-road-ahead/ states:
“Yes, we did set a timetable, but really it is in the hands as well of our joint venture partners.”
FMG chief operating officer Greg Lilleyman said Iron Bridge would require less energy than CITIC Pacific’s Sino Iron Ore project.
He added a full size grinding plant had been built to complete processing trials, and if the project was approved, additional plants would be added.
Ms Gaines said FMG produced a 67 per cent iron magnetite concentrate product at Iron Bridge, and described the project as “very high-grade”, which would sell at a significant premium in the current market.
Further, the iron ore from Iron Bridge is intended for Formosa Group's steel mill in Vietnam, so it lessens reliance on China. Formosa has already spent huge dollars getting into the Iron Bridge project, so it is serious. Also, the ore will be sent to the cost via a slurry pipeline – maybe NWH can sidle into that game too.