If Gondwana's drilling at it's Corunna Iron-ore prospect in the Pilbara identifies a large enough resource, the company will be looking to do some pre feasibility studies which would I'd expect, include access to Fortescue's rail and port facilities but longer term, if the resource is large enough, will probably be seeking to secure some long term facilities at Port Hedland. From today's Mining News Premium, an article on the expansion plans for the port facilities at Port Hedland increases the opportunities of such security of facilities... MacTeirnan is supportive as well so having the government on side is another plus. The Northern alliance of Juniors has progressed the initial available port expansion ( in around 2012) which is good news but the moves by BHP to expand further with a new 400mt p.a. outer harbour facility ( 200mt for BHP and 200mt for other iron-ore producers ) improves the long term security for all. If Gondwana joins the other juniors and proves up a JORC resource of near surface hematite for Direct Shipping Ore and a deeper magnitite resource, the port facilities 2nd stage expansion will be good for not only Gondwana but other juniors as well.
The article....
The Pilbara 2008:
Port expansion a Quantum leap forward *UPDATED* -------------------------------------------------------------------------------- Thursday, 21 August 2008
AS THE iron ore-fuelled boom chugs along, the major port in Australia’s iron ore-rich heartland is getting crowded. Colin Jacoby reports on the port expansion plans at Port Hedland.
The inner harbour at Port Hedland in Western Australia’s Pilbara region is fast expanding and with the world’s biggest miner BHP and the self-proclaimed “new force in iron ore” Fortescue Metals Group looking to expand production, further pressures will be placed on the port.
BHP, which produced 112Mtpa of iron ore last year, is planning to take its operations to 200Mtpa by 2011 and ramp up further to 300Mtpa by 2015 while FMG plans to eventually ship 200Mtpa from the inner harbour.
Added to that are the two new multi-user berths in the Port Hedland inner harbour reserved for the North West Iron Ore Alliance and other junior iron ore producers. The two berths will have up to 50Mtpa iron ore export capacity from 2012, providing alliance members – Atlas Iron, Brockman Resources, BC Iron and FerrAus – with sufficient capacity.
Port Hedland Port Authority chief executive Andre Bush told MiningNews.net that the inner harbour would be reaching capacity in five years.
“In the last year we had 130.7 million tonnes [of throughput],” he said.
“The coming year ending June 2009 we should be up at around 180Mt…and then we are heading to triple the current figures to around 440Mt in the next five years so that would take up the capacity of the inner harbour effectively within five years.”
In a move to ease capacity constraints in the inner harbour, BHP has flagged the development of a 400Mtpa outer harbour facility at Port Hedland, called the Quantum project, with BHP allocated around 200Mtpa of the capacity while the remainder will be allocated to other miners.
Bush said BHP had been working with the Port Authority to fast track the outer harbour development, which will include a new channel, jetty and shiploading facilities.
“From 2013 onwards future capacity would have to come from the outer harbour which is yet to be approved,” he said.
“2013 is the earliest it could come on stream allowing sufficient time for all the environmental studies and the development dredging and the rest of it.
“I think we are allowing a sufficient amount of time in there for all normal eventualities.
“Obviously it’s a long period to get that capacity on stream but I think it is being reasonable.”
During a media conference call earlier in the week, BHP Billiton’s chief executive Marius Kloppers remained tight lipped over the outer harbour development.
“[Quantum] is at an early stage and has not yet moved into feasibility like Rapid Growth Project 5, so like I always have to answer on all of those projects that are still in pre-feasibility [and] don’t appear on the official execution schedule… the final scope and form of that is yet to be sanctioned and I can’t go beyond that for the outer harbour developments.”
However, WA Planning and Infrastructure Minister Alannah MacTiernan said in response to media reports that the development of a multi-user outer harbour could go ahead without BHP’s backing.
MacTiernan said planning of an outer harbour at Port Hedland was proceeding and included an independent wharf facility, with up to 200Mtpa capacity for other exporters.
“While the BHP outer harbour proposal would increase opportunities for junior producers, the strength of global demand for iron ore makes a range of alternatives possible,” MacTiernan said.
“For example, either a joint venture by junior miners, or a private infrastructure provider, could independently dredge a second channel and develop the proposed independent facilities.
“In such a case, the channel and the wharf would be available to a range of users based on a transparent third-party access regime.”
Meantime, the Utah Point berth at Port Hedland, which is expected to be operational by 2010, is expected to provide increased export capacity for junior miners.
“We are just waiting for the environmental approval before we commence construction and hopefully we will have that sorted in October - November,” Bush said.
“If all goes to plan, first quarter 2010 we should be operational there. That will have capacity of upwards of 17Mt.”
Meantime, BHP’s Rapid Growth Project 5 (RPG5) which would ramp up production capacity to 200Mtpa, is expected to be approved shortly.
“We have committed about $1 billion in pre-commitments [on RPG5] to order long lead time items,” Kloppers told journalists this week.
“We have not sanctioned that project [but] it is very imminent ... That is for dredging a couple of berth pockets in the inner harbour, duplicating some rail way line and so on and so forth.”
Earlier this year, the mining giant approved $US1.04 billion in funding for RPG5.
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