Development Plan
It is proposed to mine the Southdown Magnetite deposit using proven open pit mining methods with the magnetite mineralisation being crushed, ground, screened and then magnetically separated to produce a magnetite concentrate at a planned ultimate production rate of 6.6 million tonne per annum (Mtpa). Coarse production waste (tailings) will be dewatered and deposited as solid tailings while finer material will be deposited in a slurry form into a tailings storage facility. Overburden is to be placed in waste rock dumps for the first 5 years of production following which progressive backfilling of the pit with both waste rock and tailings is planned.
The magnetite concentrate will be pumped as slurry, approximately 100 km to a concentrate storage facility at the port of Albany before being loaded on to capesize vessels and shipped to an iron ore pellet plant located in Malaysia. Filtered water recovered from the slurry will be pumped back to the mine site for re-use in the concentrator via a return water pipeline buried beside the slurry pipeline.
At Albany Port the construction of a new berth will be required and the Albany Port Authority will reclaim land to accommodate a concentrate storage facility and ship loading infrastructure. Widening of the existing shipping channel into Princess Royal Harbour and extending the channel into King George Sound is also proposed to facilitate the access of capesize vessels.
Grange intends to export the Magnetite concentrate from Albany to a new pellet plant the company has approval to build at Kemaman Port on the east coast of peninsular Malaysia. The design capacity of the pellet plant is 6.8 Mtpa. These pellets will be suitable for use in producing Direct Reduced Iron (DRI).
The magnetite resource within the Grange mining leases is sufficient to support the planned production rate of 6.6 Mtpa for a period of aproximately 22 years. Known extensions to the magnetite deposit within the adjacent exploration licence could extend the project life considerably.
Subject to Project approvals and financial closure being received in 2008 the estimated project timetable is:
| Activity |
Southdown |
Kemaman |
| Commence Construction |
Q3 2008 |
Q3 2008 |
| Commence Mining |
2010 |
- |
| Complete Construction |
Q3 2010 |
Q3 2010 |
| Plant Commissioning |
Q4 2010 |
Q4 2010 |
| Full Production |
2011 | 2011 |