THE BOURSE WHISPERER: IronClad Mining (ASX: IFE) has received a nod of approval from the Government of South Australia for the company’s application for amendments to the existing Lucky Bay Port approval.
IronClad had asked the SA Government for a number of amendments to be made to existing approvals since the downturn in global iron ore prices last year.
The major changes sought by IronClad were for the introduction of a bulk ore, buffer stockpile to be situated within 1.5 kilometres of the planned loading facilities, within an area leased by the company, and a reduction in the trans-shipment distance from 10 nautical miles to 7 nautical miles.
The government approved the shorter trans-shipment distance amendment last month.
IronClad is required to transport all ore from its mine site at Wilcherry Hill – located 40 kilometres north of Kimba, on the Eyre Peninsula to the port at Lucky Bay (about 156kms away), about 120 kilometres south of Whyalla – in containers.
Due to the bulk density of iron ore and loading logistics, the containers need to be custom designed, built and delivered at a cost of over $7, 000 per container.
Logistics demanded that approximately 3,000 containers would have to be built and delivered.
Ironclad indicated the new amendments to the Lucky Bay approval will result in significant savings.
“We took the liberty of presenting government, in advance, with a full set of technical and environmental impact data relating to the buffer zone proposal so we believe that the approval time is likely to be shorter than the normal three months,” IronClad Mining managing director Robert Mencel said in the company’s announcement to the Australian Securities Exchange.
“With that approval in place we can lock in significant operating and capital cost reductions.
“With iron ore prices also rebounding recently, the SA Government approvals give us further strong impetus to commence production as soon as possible.”