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West Pilbara Iron Ore Project Definitive Feasibility Study

 

 

            Highlights

 

·         Definitive Feasibility Study (“DFS”) reports technical and financial viability of a 30Mtpa 1st Stage iron ore project in the West Pilbara

·         The DFS estimates an NPV10 of $2.2 billion and an IRR of 16.4%

·         Capital expenditure is estimated at $5.77 billion, including ePCM and contingency costs

·         Operating costs of $19.48 per tonne FOB, excluding royalties, at 30Mtpa

·         Average annual Project EBITDA of $1.8 billion at 30Mtpa using iron ore prices and exchange rates as forecast by ©Metalytics Iron Ore Briefing Service

·         DFS recommends construction of a 30Mtpa mine, 282km of new rail and a new deep water port facility at Anketell Point, which has collectively been granted Major Project Facilitation status by the Federal Government whilst the port development was recently approved as a multi-user facility by the State Government

·         Development decision by the Project Participants is scheduled for the September Quarter 2010

·         Subject to statutory approvals and funding, construction could commence in the March Quarter 2012 with first shipments early in Calendar 2014