Hawsons Iron Ltd (ASX:HIO) is advancing a bankable feasibility study (BFS) for its namesake project near Broken Hill in Far West NSW, with the appointment of leading engineering group Australian Mine Design and Development Pty Ltd (AMDAD) as mining consultant.
AMDAD’s appointment follows the awarding of other key BFS contracts to global specialists earlier this year to examine optimum infrastructure pathways, process engineering design and decarbonisation opportunities for the iron ore project on the border of South Australia.
Notably, AMDAD's client list includes resource sector stalwarts such as Newcrest, OceanaGold, BHP, Glencore, Mitsubishi, Thiess and Oxiana, and it expects to have the scope of works completed by mid-November.
“Established track record”
Hawsons executive chairman Bryan Granzien said: “Brisbane-based AMDAD has been engaged to prepare a complete mine plan, including final pit design, mining sequence, implementation schedules, fleet composition, mine power requirements, costings and pathways to net-zero emissions.
“We are looking forward to working with the team from AMDAD who have established a track record for taking a holistic approach to mine plan development, including consideration of Environmental, Social and Governance (ESG) inputs.”
Decarbonisation and sustainability assessment
Prior to AMDAD’s appointment, Hawsons received a comprehensive report from Worley consulting business Advisian, detailing the ideal energy balance to optimise the project’s ESG and sustainability outcomes.
Granzien adds: “The report sets out three decarbonisation pathways for Scope 1 and 2 emissions abatement, the most comprehensive of which would enable the Hawsons Iron Project to achieve net-zero emission status required for production of ‘Green Steel’ by 2035.
“Advisian has also developed a sustainability framework to enable us to embed material sustainability considerations within the project’s decision making and value improvement processes.
“The aim of this framework will be to minimise any exposure to risks from material sustainability issues and maximise any opportunities for beneficial outcomes.”
Drill program
Hawsons aims to recommence its drilling operations as soon as the site can be accessed following poor weather conditions.
Granzien said Hawsons Iron was doing everything possible to mitigate the ongoing impact of wet weather on the site and to expedite analysis of the large number of drill core samples already obtained to keep the work program on schedule.
“The Bureau Veritas laboratory in Adelaide has been working 24/7 on the analysis of 500 samples a week to generate the assay results required to update the project’s mineral resource estimates as scheduled before the end of this quarter.
“Everyone’s been working around the clock to ensure we can deliver on time and meet our schedules despite ongoing weather disruptions.
“To date, we’ve completed resource drilling at approved locations and as soon as we can regain full site access, we will complete the geotechnical drilling program that is providing the data required by the mining engineers to develop the pit plan.”
Project progress
BHM Process Consultants have been providing metallurgical and process engineering lead assistance to Hawsons’ own internal specialist plant engineers and comminution test-work has now been completed at ALS’s laboratory in Perth.
Other diagnostic testing for the wet plant is well advanced and investigations are underway on an alternative test-work program schedule and potential for advancing plant design.
Initial assessment of tailing options including traditional centreline and downstream raises as well as cyclone sand dams and dry stacking have also been completed.
With transport studies, recently appointed consultants are progressing the examination of an underground, direct to port slurry pipeline and port development as part of the extended BFS studies to incorporate a 20 Mtpa option.
Slurry pipeline specialists Fortin Pipelines is progressing the slurry pipeline alignment studies, design, specifications and estimation while global port infrastructure experts Royal HaskoningDHV is advancing the completion of port design work.
Environmental impact study
A new informative Project Newsletter is about to be distributed to help keep all stakeholders updated on the project and related developments.
The newsletter forms part of the community engagement component of the Environmental Impact Study (EIS) and has been designed to have broad stakeholder appeal from landholders and service providers to civic leaders and bureaucrats, as well as shareholders.
Commenting on the EIS, Granzien said SLR Consulting had completed autumn ecology and cultural heritage surveys for the proposed project footprint in NSW.
“The proposed infrastructure footprints are also in the process of being locked down and the balance of the EIS technical studies in NSW will have all commenced before the end of June,” he said.
The company is also well advanced with EIS planning in South Australia and work on the slurry pipeline and port components will get underway once the project description, risk assessments and infrastructure footprints have been finalised.
About project
Hawsons Iron Project is 60 kilometres southwest of Broken Hill, in the emerging Braemar Iron Province.
A pre-feasibility study (PFS) for the project, which was completed in 2017, showed that it is capable of producing one of the world’s highest-grade iron products (70% iron), making it among the world’s leading undeveloped high-quality iron ore concentrate and pellet feed projects.