Former Fortescue boss Gordon Toll's $5bn SA venture declared major project by State Government
A potentially transformative iron ore project backed by the former chairman of Fortescue Metals Group has been granted major development status by the State Government.
Braemar Infrastructure, which is chaired by Gordon Toll, wants to build a mining and export operation worth up to $5 billion, shipping up to 100 million of tonnes of ore per year from the state's east.
"The project will receive iron ore concentrate produced by iron ore mines located in the Braemar region in northeast South Australia and deliver it to a floating storage and off load facility located in the Spencer Gulf, where it will be loaded onto ships for export,'' the company said.
"The project will have a capacity of up to 100 million tonnes per annum (mtpa). The project will be developed in stages, with the first stage expected to have a capacity of 25mtpa.
"Production of 100mtpa of iron ore concentrate represents an eight fold increase in the amount of iron ore currently being export from South Australia.''
The 385km infrastructure corridor needed would also include up to four underground slurry pipelines, fibre optic communications and power lines.
Braemar Iron managing director Nathaniel Toll said a conceptual feasibility study had shown the project could be a "significant prize, and a prefeasibility study would be done over the next 18 months to two years. A decision on whether to go ahead with the project could be made about six months later, when construction would begin.
"We sort of see this as the next Fortescue,'' Mr Toll said.
The company's early-stage studies showed the product would be competitive with Pilbara iron ore on price, and of better quality.
Mr Toll said the company aimed to export its own product, and had been acquiring exploration rights in the region, but expected to act as a third party infrastructure provider for other mines.
The major development status hands the approval process for the project to the Development Assessment Commission and also assigns a case manager to it.
Infrastructure and Mineral Resources Minister Tom Koutsantonis said the project would provide a low-cost, high-volume export solution.
"A project of this size generates jobs and economic activity benefiting all South
Australians, as it contributes to a viable, long-term mining processing industry,'' Mr Koutsantonis said.
"When fully developed the project has the potential to increase the state's exports of
iron ore concentrate from 12 million, to more than 100 million tones per year."
Braemar Infrastructure is now required to lodge its development application with the
DAC, which will then determine the level of assessment required and guidelines for the proposed development
