Atlas gets trucking on magnetite approvals

Article by Matt McKenzie courtesy of Business News.

Plans for the multi-billion-dollar Ridley magnetite project have been lodged with the federal environmental regulator.

Atlas Iron is hoping to build a 3 million tonne per annum magnetite project in the Pilbara, with production to be trucked to Utah Point at Port Hedland for export.

Stage two of the project will increase production capacity to 16.5mtpa.

Most iron ore exports from Western Australia are hematite, an ore that is directly shipped.

Magnetite requires more processing to lift the ore grade to an export quality, with projects such as Citic Pacific’s Sino Iron and Karara Mining’s Karara operation two examples.

Fortescue Metals Group is pursuing its own at Iron Bridge.

Ridley is one of the major expansion projects for Gina Rinehart’s Hancock Prospecting empire, with Mt Bevan magnetite and McPhee Creek also on the agenda.

The second stage development at Ridley will include a slurry pipeline and a 28 gigalitre per annum water desalination plant, powered by solar energy.

That’s about half the size of the Water Corporation’s desalination plant in Binningup.

Atlas has previously said a final investment decision for the project, near Pardoo, is expected by the end of this year.

Before then, a feasibility study will need to be completed.

Hancock Prospecting Group chief executive of projects Sanjiv Manchanda said he was pleased to confirm the Ridley project had commenced formal approval processes.

“This involves a major investment which, if economic, could provide a critical input into the long-requested further upgrading of iron ore,” Mr Manchanda said.

“This (iron) material is low and needs to be upgraded, or (the resource) will sit in the ground earning no revenue for West Australians, or the state and federal governments.”

He said governments needed to be aware of high costs in the Pilbara, and cautious about adding regulations which would put new projects at risk.

The project will also need to negotiate through new federal government restrictions on carbon emissions, with the latest edition of Business News warning the new federal safeguard mechanism could disrupt magnetite projects.