Shree Minerals Limited (ASX:SHH) has taken another step in the application process for development of a Direct Shipping Ore (DSO) operation at Nelson Bay River Iron Project (NBR) in northwest Tasmania with the local council advertising the company’s proposals for public consultation.
Circular Head Council has advertised both permit application DA 18/059 along with Development Proposal & Environment Management Plan (DPEMP) for the DSO project.
EPA guidance
This follows advice received from Environment Protection Agency (EPA) Tasmania in October that the DPEMP has been prepared in accordance with the guidance provided by Board of the EPA under section 74(3) of the Environmental Management and Pollution Control Act 1994 and is taken to be lodged under section 27F(1A).
The council has subsequently reviewed the company’s permit application DA 18/059 for compliance with the council’s relevant planning scheme that has included written advice from the road authority, Parks and Wildlife service etc.
“Significant progress”
Shree Minerals director Sanjay Loyalka said, “the advertisement of the permit application and the DPEMP by the government authorities for public consultation is a significant progress of the permitting process of DSO project.
"On this basis, the company hopes to be in a position to consider a decision for recommencement of the mine after the permit is granted.
"The company remains committed to driving value for shareholders and look forward to updating the market as it continues to advance NBR project.”
Location plan – northwest Tasmania.
Open for comment
The Case for Assessment is open for public comment until February 8, 2022. A copy of the full development application is available for viewing at: https://www.circularhead.tas.gov.au/news/publicnotices. The DPEMP can also be viewed at https://epa.tas.gov.au/working-together/public-consultations.
Once the public consultation period has ended, the company may be required to provide additional information to address issues that may arise during this period.
About NBR project
NBR Project is in the far northwest of Tasmania and is about 150 kilometres from the Burnie Port. It is within an established mineral province in the region and operating mines include Grange Resources Limited (ASX:GRR)’s Savage River Iron Ore.
The DSO project at NBR is an all-contract mining, processing and haulage operation using local contractors in the region. It requires no major processing beyond crushing and screening after which the ore is then trucked to the port and shipped.
It was developed in 2013 with the first shipment of ore leaving the Port of Burnie in January 2014. The NBR project was placed on care and maintenance in June 2014 following sharp iron ore price falls.
With the improvement in the iron ore price, the company has been actively working to re-permit the NBR. The strategy has been to recommence the production of the DSO resources from the existing open pit at NBR.
To resolve legal issues with the existing permit, in August 2018, the company applied for a new Tasmanian environmental permit covering the DSO operations. After public consultation, the EPA issued guidelines for the preparation of a DPEMP.
Working towards adopting this framework, the company has completed the requisite technical studies to develop the DPEMP.
3D Magnetic Inversion Study.
Iron ore markets
Iron ore prices while volatile, are forecast to remain at healthy levels. Any near-term supply response is expected to be limited, particularly with little latent capacity left at major iron ore exporting ports and railways in Australia.
As iron ore prices remain healthy, there has been further improvement in premiums for material with lower impurities like low alumina (like the NBR DSO product) as Chinese authorities continue emphasis on environment control.
NBR has a JORC-compliant global iron mineral resource of 11.3 million tonnes, including goethitic-hematite resource of 1.4 million tonnes and magnetite resource of 7.8 million tonnes.