Australia is the world’s largest iron ore shipper, and earnings from the steel-making materials is the principal driver of Hancock’s income, though it’s expanded not too long ago into different supplies together with lithium and uncommon earths, in addition to copper and gold. Whereas futures have sagged this yr as Chinese language demand exhibits, the majority of Australian tasks nonetheless have prices far under present ranges.
A pre-feasibility report for Mt Bevan launched on Tuesday estimated capital-investment prices of A$5 billion ($3.3 billion) to develop the 12 million ton a yr mine, with a 25-year life. Ore can be transported in a 125 kilometer (78 mille) slurry pipeline to a rail line, earlier than being exported from the port of Esperance.
Working prices for the venture have been estimated at $64 a ton, based on the research. Iron ore futures in Singapore have been final close to $108 a ton after slumping by about 23% this yr.
(By Paul-Alain Hunt)