Brockman Resources has gained environmental apporval for its Marillana iron ore project in the Pilbara, where the company aims to establish a 17 million tonne per year mining operation.
Brockman Resources has gained environmental apporval for its Marillana iron ore project in the Pilbara, where the company aims to establish a 17 million tonne per year mining operation.
The company announcement is below:
Receives Key Environmental Approval for Marillana Iron Ore Project
- Environmental Scoping Document (ESD) formally approved by Western Australia's EPA for the 100%-Owned Marillana Project within the Pilbara region.
- Public Environmental Review (PER) documents well advanced and expected to be lodged in Quarter 4 this Calendar year, ahead of 4-week public release period scheduled to commence in March 2010.
- Brockman targeting final environmental approval in late 2010, to enable construction to commence in the first half of 2011.
- Further key step forward for Marillana Project following the positive Pre-Feasibility Study released last week on a planned 17Mtpa haematite operation.
Australian iron ore company Brockman Resources Limited (ASX: BRM) has taken another key step towards development of its 100%-owned Marillana Iron Ore Project in the Pilbara as a 17Mtpa haematite operation after receiving formal approval from the Western Australian Environmental Protection Authority (EPA) for the Project's Environmental Scoping Document (ESD).
The ESD specifies the scope and content of the Public Environmental Review (PER) for the proposed Marillana Project, clearing the way for commencement of the PER process - the next key stage of environmental approvals required for the Project.
All of the key documents and studies required as part of the PER and the drafting of the PER document itself is well advanced and is expected to be lodged in Quarter 4, 2009 with the EPA to commence the requisite review process prior to the four week public release period, scheduled for March 2010.
Brockman is aiming to secure final environmental approval for development of the Marillana Project in the second half of 2010, clearing the way for construction of the Project to commence in the first half of calendar year 2011.
The EPA approval follows another major milestone for Brockman with the release last week (10 August 2009) of the Pre-Feasibility Study (PFS) for the Marillana Project. The PFS confirmed the technical and financial robustness of the Project as the Company's first planned iron ore production hub in the Pilbara.
The base case in the PFS comprises a proposed A$997 million development of the Marillana Project encompassing two front end beneficiation plants located on site, rail haulage via the nearby BHP Billiton railway line which runs through the Marillana tenement, and export via the new 50Mtpa North West Iron Ore Alliance berths in Port Hedland due for completion in early 2013.
The Marillana Project will be capable of producing between 17 to 20Mtpa of final product grading 58-62% Fe over an initial mine life of 20 years, potentially positioning Brockman as Australia's fourth largest iron ore producer. The PFS estimated operating costs ranging from A$31.50 to A$34.10 FOB (excluding State royalties).
Commenting on the announcement, Brockman's Managing Director, Wayne Richards, said: "The approval of the ESD represents a significant milestone in the overall Marillana Project development timeline and complements the completion of its positive Pre-Feasibility Study released earlier this week.
"We expect a strong flow of project updates over the coming months, including award of the contract for the Definitive Feasibility Study within the next 8-10 weeks, award of the Pre-Feasibility Study for the new North West Iron Ore Alliance berths at Port Hedland, the completion of the final Native Title Mining agreement, and continued progress on a range of different fronts with regard to rail access and haulage regimes within the Pilbara."
The Marillana Project is scheduled to commence production of iron ore late in 2012, in time for first ore to be shipped out via the new NWIOA berth at Port Hedland.
Brockman is in a unique position in the Australian junior iron ore sector with a world-class JORC compliant resource of 1.4 billion tonnes, uncommitted cash reserves of approximately $100 million and close proximity to existing rail, road and port infrastructure.
