Magnetite production consists of up to 40% Fe, and is exported to China for processing in $1.8b pellet plants...... ( maybe except for OneSteel Whyalla steel mill, who feed their mill with magnetite from Iron Dutchess mine.)
Plutons sandstones iron ore deposits provide optimal recoveries, and are amenable to dry processing (cheaper more effecient than wet drum magnetite processing).
See brief link from the Company below...(plus some other very current info highlighing demand for "EXPENSIVE CAPITAL" iron ore benefication product.)
Irvine Island is the closest major iron ore deposit to China ports - AND without the need for rail and port facilities, as applies to ALL other iron ore benefication projects anywhere. It is hard therefore, to understand why investors think Irvine Island benefication project will not work.
Of other future projects...and their are dozens - all requiring transport and port (or slurry pipelines)....Irvine Island, I think can secure the required capital funding.
4.4mtpa ramping up, would see EBITDA initially of $400m PA for this $50m company. ________________________________________________________ PLUTON 22 March 2011
The bench scale tests indicate that the optimal iron recovery of the Wonganin Sandstone samples (PLV_MET_1 to PLV_MET_3) occurred at a medium magnetic intensity (4000 gauss). The Yampi Member samples achieved optimal iron recovery at a low magnetic intensity (1000 gauss). The iron grade versus head iron from 1000 gauss to 4000 gauss is plotted in the following graph (see link at the bottom of the release).
The bench scale test work indicates that samples are amenable to upgrading to a +40% pre-concentrate by dry magnetic separation provided the minimum average feed grade is 28% Fe. The mass recoveries of these tests range between 50% for the lower iron feed grade to 90% for the highest iron feed grade.
One sample included in the test work was above the 40% feed and produced a pre-concentrate nearing 60% iron.
Essar Global ? which recently completed the takeover of steel producer ZISCO ? plans to build a pipeline between Zimbabwe and Mozambique's port city of Beira to handle up to 20 million metric tons of iron ore exports.
The pipeline, which could become the world?s biggest such project, would transport iron ore slurry from ZISCO?s Ripple Creek mine to the Beira, London-based brokerage Securities Africa has said citing Essar's Africa Director Firdhose Coovadia.
Essar Group, through its Essar Africa Holdings unit, is working on plans to revive the comatose Redcliff-based Ziscosteel after acquiring a 54 percent interest in the company in March in a deal worth about $750 million.
Zisco subsidiary, Buchwa Iron Mining Company (BIMCO), meets the steel producer?s iron ore requirements from Ripple Creek mine which is located some 17 kilometres from the Redcliff steel works.
Reports Essar plans to export the iron ore suggest the company is looking to expand Bimco?s operations and possibly exploit other vast iron ore bodies in the country.
Still, Essar's plans to export iron ore slurry may conflict with government policy in Zimbabwe, where authorities are encouraging miners to add value to minerals before exporting them, Securities Africa said.
However the company insisted that the ore would be processed before export.
?Mozambique is the logical exit point for any exports of iron ore from Zimbabwe,? Essar said. ?Any export of iron ore from mines in Zimbabwe would only happen after beneficiation to add value.?
Meanwhile, Essar did not say how much it would spend building the pipeline, and Coovadia said that "some of the plans we have are firm, but others are non-firm," according to Securities Africa.
The pipeline could become the world's biggest, surpassing a 396-kilometer-long pipeline carrying ore from Essar's Germano mine to the Hazira steel plant in Brazil, Securities Africa said.
Xstrata ships first magnetite concentrate By Cole Latimer on 15 June 2011 0 comments Xstrata
Copper has shipped its first magnetite concentrate this morning, making the miner Queensland first magnetite exporter.
?This milestone strengthens our north Queensland copper operations,? Xstrata Copper NQ chief operating officer Steve de Kruijff said.
?The Ernest Henry Mine (EHM) will produce about 1.2 million tonnes of magnetite concentrate per year, which will be used to fuel Asia?s steel industry and also used as a washing agent in domestic coal operations,? he said.
The move is ?the final milestone for Xstrata?s $79 million magnetite project at EHM,? the miner stated. It is part of the miner?s plan to transform Ernest Henry from an open cut pit into a major underground copper gold operation.
Magnetite concentrate will be stockpiled at EHM and then transported via road to a rail load-out facility near Cloncurry, after which it will be hauled to Townsville.
It is predicted to create a number of new jobs at the port, de Kruijff saying ?the receival, storage and shipping of magnetite concentrate has generated 14 additional operator and maintenance roles within the operations and another two positions within shipping and sales?.
Port of Townsville CEO Barry Holden said the first export of magnetite in the state was exciting and that the company looks forward to growing this trade.
PLV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
