Tag Archives: Bryan Granzien

Hawsons Iron and Flinders Ports engage in greenfield port option talks in South Australia

Hawsons Iron Ltd says it has signed a legally binding agreement with Flinders Ports Pty Ltd to co-operate on the potential development and operation of a greenfield port at Myponie Point Port on South Australia’s eastern Spencer Gulf.

The scope of the agreement, formalising the terms of an earlier non-binding Memorandum of Understanding, has been expanded to include evaluation of lower tonnage options using existing rail
and port infrastructure and possibly scaling production and export options over time.

Hawsons Managing Director, Bryan Granzien, said the terms of the agreement reflected the board’s decision to slow the pace of work on the 20 Mt/y bankable feasibility study (BFS).

“Importantly, this agreement will enable us to collaboratively assess and agree on the optimum achievable port to support a revised BFS, if required, including consideration of potential short- and long-term solutions for our preferred site at Myponie Point,” he said.

“Flinders Ports fully understands our decision to consider scaling up the project’s production output and using existing rail and port infrastructure initially to reduce capital costs, and they could not be any more supportive.”

Granzien said options for Myponie Point included using the existing rail network and the construction of initial port infrastructure to support a barging operation during the first stage of the project’s development.

“This approach at Myponie Point could deliver the best of both worlds through a lower output start-up operation at a lower capital cost and a clear pathway forward to expand production to 20 million tonnes per annum using the direct to port underground slurry pipeline,” he said.

Under the terms of the agreement and subject to further agreement in final transaction documents, Flinders Ports would construct, own and operate the proposed Myponie Point Port – reducing the Hawsons Iron project’s capital requirements, while enabling the company to participate in future growth as the port’s ‘cornerstone’ customer.

Granzien said Flinders Ports was equally committed to meeting environmental, social and governance (ESG) standards and embedding ESG considerations in business processes and decision-making wherever possible.

“This milestone agreement with an operator of Flinders Ports’ calibre is an important step to our goal of meeting demand for high-grade products so essential for decarbonising steelmaking,” he

Flinders Port Holdings Chief Executive Officer, Stewart Lammin, said: “This agreement with Hawsons reflects our ongoing commitment to facilitating large-scale export projects from South Australia by leveraging existing infrastructure and exploring the development of new ports where necessary.

“The Hawsons project is an exciting prospect and aligns with our Sustainability Plan and aim to develop sustainable supply chains that meet the growing expectations of the market.”

The Hawsons Iron Project is some 60 km southwest of Broken Hill, New South Wales, Australia, in the emerging Braemar Iron Province. Prefeasibility Study results for the project, which was completed in 2017, showed that it is capable of producing the world’s highest-grade iron product (70% Fe), making it the world’s leading undeveloped high-quality iron ore concentrate and pellet feed project, the company says.

Hawsons Iron takes another step towards securing export for Supergrade magnetite concentrate

Hawsons Iron Ltd says it has signed a two-year option agreement to purchase three contiguous parcels of land suitable for developing an export facility for its namesake project at Myponie Point on South Australia’s eastern Spencer Gulf.

The agreement gives Hawsons the right to purchase the three blocks of land totalling 1,000 acres (405 ha), for A$14 million ($9.7 million) at any time within two years of the execution date.

A full Bankable Feasibility Study (BFS) for the Hawsons Iron Project is underway and scheduled to be completed by the end of 2022. The Hawsons orebody’s softness, relative to ‘hard rock’ magnetite orebodies found in Western Australia’s Pilbara region, offers clear commercial advantage, the company says. It requires less energy during crushing and grinding to extract the magnetite concentrate, while a higher, 70% Fe grade is achieved because the ore is easily separated from impurities and waste.

The company has defined a 2012 JORC-compliant resource of 3,060 Mt at 13.1% Davis Tube Recovery (DTR) at a 6% cutoff for 400 Mt of concentrate with a planned production rate of 10-20 Mt/y over a 20-plus-year mine life.

Managing Director, Bryan Granzien, said the export facility agreement strategically underpinned the Memorandum of Understanding executed earlier with Flinders Ports Pty Ltd, moving Hawsons closer again to its goal of supplying high-grade products, essential for decarbonising steelmaking.

“This agreement secures a crucial export site required for the planning and development of our 20 Mt/y project and, importantly, provides significant additional space to accommodate expansion of the Myponie Point Port into a multi-user, bulk commodity export facility,” he said.

“Now that we have identified our port location, planning and detailed design work can continue on the deep-water port facility and the underground slurry pipeline from Broken Hill, including all approvals and land access agreements along the 392-km pipeline route.”

Granzien said Hawsons stood to gain from an opportunity to participate in the future growth of the Myponie Point Port as its ‘cornerstone’ customer by securing additional space required to support development and expansion. Myponie Point Port is expected to be ready to start exporting Hawsons’ Hawsons Supergrade® magnetite concentrate by the second half of 2024.