The resource size, grade & infrastructure comparisons were done, PF1 v MRL's acquisition as it was a direct reply to a post.
re: "PF1 Hamersley project Fe ~55% would be ideal to blend into higher grade ore. Which is exactly what BC Iron did at Nullagine when they signed into a agreement with FMG about 10 years. Fast foward and Nullagine is now apart of the FMG portfolio." (a) I don't disagree that it could be blended, but finding a company that wants PF1's ore, with the suitability to product match, resulting with grades of blended ore falling within the base and maximum ranges, and viable to be transported to the buyer, will be the large issues to overcome (IMO) all while most producers are striving towards the ~Fe 60.1 low point cut off for premium grade ore.
Fastmarkets, MBIOI-58 is a price representing the lower grade iron ore fines market. All prices within the specification maximums below are normalised to base specification ....... red highlighting PF1 outside the specifications (using PF1 indicated resource only) Fe content base - 58%, range 56 - 60% - PF1 = 55.2% Silica: base 5.5% maximum 9% - PF1 = 10.9% Alumina: base 3.5% maximum 5% - PF1 = 5.5%
- Also, IMO, doubt FMG are/will be interested in PF1's low grade, high impurity ore given that their Solomon Hub (Firetail & Kings valley mines) represents a valuable source of production by blending higher iron ore, low cost Firetail ore with low phosphorous Chichester ore to create "Fortescue Blend" with a capacity of 75mtpa, and the current operation expanding to include the Queens Valley mining area. - The only times from memory FMG have been interested in WFE/PF1's Hamersley I/O was when they purchased some blocks of land in the Northern portion of the Hamersley tenements, IMO, where the Solomon Hub Rail line extension went through? But I have not been able to find a FMG corresponding announcement. https://www.asx.com.au/asxpdf/20160229/pdf/435g13ylw46zqs.pdf - from the West Australian (Perth) Tuesday July 23, 2013 - Winmar said "it was negotiating over access to Fortescue's Solomon hub line as part of pre-feasibility studies on its Hamersley iron project." -
(b) Nice story BUT, there is no reference or inference in the JV announcement to suggest that there would be any intention of "blending" BC Iron / FMG ore. - on the contrary, from the same JV announcement, "The Nullagine Project's resources comprises a high - quality, Direct Shipping Ore of 51m/t grading ~ 57% Fe(65% calcined Fe) with ultra-low phosphorous." - just a small fact that was missing from your post? - from the same announcement, BC Iron managing director said: "The Joint Venture and the Rail Haulage and Port Services agreements overcome the critical infrastructure barriers to iron ore production." https://www.asx.com.au/asxpdf/20090605/pdf/31hy5bs895p0qm.pdf https://www.asx.com.au/asxpdf/20080901/pdf/31c28k6vqhpq58.pdf
-- The NJV utilises Fortescue’s infrastructure at Christmas Creek, 50km south of the Nullagine mine, to rail up to 6Mtpa of ore to Port Hedland from where it is shipped directly to customers overseas. https://minedocs.com/17/BCIMinerals_Reserves_2015.pdf Fun Fact - 2016 FMG Bought out JV partner BC Iron of its 75% stake in the Nullagine I/O project for the princely sum of $1.00 - when the I/O price continued to fall, the last shipment of the JV high quality DSO (see above) was Feb 2016. There was a trial of the low grade ore stockpiled at the Nullagine project whereas FMG advised: it does not wish to purchase low grade ore!!
(c) Brockman had the same issues, a project that was stagnant because of transport/infrastructure until MRL JV'd with them. - The key to unlocking the value of Brockman’s high-quality iron ore tenements in the Pilbara has been to secure a viable rail and port solution and funding. The Company has explored various development options for the Marillana project over a number of years, seeking alignment with a number of potential partners. http://www.brockmanmining.com/en/press/p180727.pdf
re: "FMG & RIO Rail infrastructure is not far away either which can take to both Dampier, Cape Lambert and Pt Hedland. So not only is a higher grade it actually has more logistics and port options."
- from WFE Roadshow presentation: Proximity of WINMAR’S iron ore resource in relation to existing and proposed rail infrastructure provides opportunities for WINMAR to progress from stranded resource to shipping ore capability.... - WFE's own Infrastructure review, and the Transport Scoping study examined in detail 4 of 20 distinct options available to transport ore from the Project. The 4 options selected for detailed analysis included a combination of existing and new road and rail infrastructure. Based on the destination port and the ability of WEJV to negotiate with 3rd party infrastructure owners - 3 options were identified as economically viable. https://www.asx.com.au/asxpdf/20140729/pdf/42r2rv9cjgzycg.pdf
Both RIO and FMG rail is 40 klms away, but consideration needs to take into account that: - FMG recently (Sept 2020) had their licence revised to increase throughput at its Herb Elliot Port facility at Port Hedland from 175mtpa to 210mtpa on a staged basis. The revised licence utilises the capacity of FMG's existing port infrastructure and in line with the company's FY21 iron ore shipment guidance. https://www.asx.com.au/asxpdf/20200904/pdf/44mb33mdxtxyzx.pdf - the WA government expanded the Port Hedland maximum capacity to 617mtpa butall the Iron Ore mining firms that use Port Hedland, - BHP, Fortescue, Roy Hill, Atlas Iron and MinRes have plans to expand production over the next few years. https://www.argusmedia.com/en/news/2198039-minres-starts-western-australian-iron-ore-mine - BHP capacity increase was approved from 280mtpa - 330mtpa at Port Hedland ahead of its expansion plans **With the large Iron Ore producers, all increasing port limits to cater for increased expansions, where does PF1 ore fit onto the train? ** If PF1 do manage to get rail access, it won't come cheap though ..... this is a 2013 article! https://www.australianmining.com.au/news/fmg-puts-576m-price-tag-on-rail-access/ ** Information on the other ports, Dampier and Cape Lambert ~ proving difficult to get port mtpa capacity v mtpa shipped
(20min delay)