Hawsons Iron Ltd (ASX:HIO)’s board is pressing ahead with work on its namesake iron ore project thanks to a key study and Memorandum of Understanding (MoU).
The executive team has endorsed a 20 million tonnes per annum project and will progress a bankable feasibility study, targeting completion by year’s end.
Hawsons has moved away from an earlier 10 million tonnes idea, preferring the “expected superior economics, ESG outcomes and investment appeal” tied to a 20 million tonnes model.
Concurrently, the company has inked an MoU with Flinders Ports to jointly design, construct and operate a greenfields Myponie Point Port to export Hawsons’ magnetite concentrate.
With its 20 million tonnes focus and the milestone MoU at hand, Hawsons moves a step closer to meeting demand for high-grade products, essential for decarbonising steelmaking.
Aiming for first production in 2024
Hawsons chair Dave Woodall said developing a 20 million tonnes per annum magnetite mine near Broken Hill in NSW would necessitate a review of the project’s schedule.
Subsequently, this will facilitate the design, approval and construction of a dedicated underground slurry pipeline to a deep-water port export facility at Myponie Point on South Australia’s eastern Spencer Gulf.
Looking ahead, Woodall said the company was targeting BFS completion in December and it hoped to get first production underway in the second half of 2024.
“The team of leading global partners and specialists we’ve engaged to complete the BFS now has the additional information required to undertake detailed engineering design and update the project’s estimated delivery timetable which we will release once completed,” he said.
MoU with Flinders Ports
Underpinning Hawson’s latest project decision is the non-binding MoU with Flinders Ports, which documents plans to co-operate on the potential development and operation of the Myponie Point Port to export 20 million tonnes of magnetite concentrate every year.
Hawsons managing director Bryan Granzien said the MoU envisaged that Flinders Ports would finance, construct, own and operate the Myponie Point Port, therefore reducing the Hawsons Iron Project’s capital requirements.
“There is also an exciting opportunity for Hawsons to participate in the future growth of the port as its ‘cornerstone’ customer,” Granzien said.
“Myponie Port is expected to be ready to start exporting Hawsons’ unique 70% iron Hawsons Supergrade® magnetite concentrate by the second half of 2024.”
Granzien said that Flinders Ports was equally committed to adopting, enhancing and living up to their ESG credentials and ensuring that as far as appropriately possible, ESG considerations would be embedded into their respective business processes and decision-making.
“Our decision to focus the BFS solely on developing the 20 million tonnes per annum project and this milestone MoU with an operator of Flinders Ports’ calibre have advanced Hawsons closer toward achieving our goal of meeting demand for high-grade products so essential for decarbonising steel making,” he said.
Flinders Port Holdings CEO Stewart Lammin said: “The MoU with Hawsons is another example of our commitment to facilitating large-scale export projects from South Australia, including exploring the development of new ports where necessary.
“The Hawsons project in itself is an exciting prospect and aligns with our sustainability plan and our aim to develop sustainable supply chains that meet the growing expectations of the market.”
At this stage, definitive arrangements between the parties are subject to negotiation and finalisation of formal documents.