Based on the information below, to achieve export of 20 Mtpa of Fe concentrate would require:
~1,736 trains each transporting 11,520 tonnes of Fe concentrate
~111 Capesize vessels
For a 12 Mtpa export operation it would require:
~1,042 trains each transporting 11,520 tonnes of Fe concentrate
~67 Capesize vessels
To fill a 180,000 tonne Capesize bulk carrier vessel would require ~16 trains, with each train carrying 11,520 tonnes of Fe concentrate.
These are 1,800 metre long trains with 25 tonne axle loads operating to an 80km/h speed limit, and transporting 11,520 tonnes of Fe concentrate per train.
Transport costs for rail are approximately $10‐$12/tonne from the Braemar in South Australia to Whyalla, per GFG Alliance.
Note: the rail distance from Port Augusta to Darwin is an additional 2,336 km. Cu-River Mining Australia used Port Pirie to export its Cairn Hill Fe concentrate, rather than exporting through Darwin.
Rail
There is an 'open access' rail line located 8 km from Havilah's Grants (the rail line is 10 km from Grants Basin and 26 km from Malkdory) Braemar Iron Formation Fe deposits.
These rail lines are able to carry 1,800 metre long trains with 25 tonne axle loads operating to an 80km/h speed limit, and transporting 11,520 tonnes of Fe concentrate per train.
The rail network in this part of South Australia consists of standard gauge rail links between Broken Hill and Crystal Brook, on to Port Augusta north of Crystal Brook (as a part of the Adelaide to Perth rail line). These corridors are owned and operated by the Australian Rail Track Corporation ('ARTC'). ARTC is a statutory corporation owned by the Government of Australia.
The section between Broken Hill and Crystal Brook is currently estimated to have 12 Mtpa of available capacity for additional volumes.
In order to export 20 Mtpa of Fe concentrate from Port Pirie or Port Augusta (once it gets up and running), five trains per day would be required with each train transporting 11,520 tonnes. Each train would take approximately 4 hours to unload, depending on the system implemented.
Port
Port Pirie’s existing port facilities are open access and are operated by Flinders Ports Pty Ltd who manage shipping, maintain port, channel, wharfs etc.
A new $250 million port facility is proposed to be built at Port Augusta. Port Augusta Operations Pty Ltd (Cu-River Mining Australia) is planning to transform a 1,068 hectare site into a new bulk commodity and transhipment port facility that would have an initial capacity of approximately 15 Mtpa with the intention to increase capacity to 50 Mtpa in the future. The project site is near a 5-kilometre rail balloon loop and unloading systems, which makes it an ideal location for a new port facility.
The preferred export option would be to tranship the Fe concentrate out to a Capesize export vessel in the shipping channel in the Spencer Gulf. Up to 7 barge loads would be required to fill a 180,000 tonne Capesize bulk carrier vessel, which could be loaded in 2.5 days.
Transport Costs
Transport costs for rail are $10‐$12/tonne from the Braemar to Whyalla, per GFG Alliance (see below).
The rail distance from Port Augusta to Whyalla is an extra ~76 km.
The rail distance from Port Pirie to Port Augusta is an extra ~93 km.
A slurry pipeline is an alternate option for transport of Fe concentrate requiring a capital investment of ~$700 million but with an operating cost of ~$1/tonne, per GFG Alliance (see below).
These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
HAV Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
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