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Legacy Iron Ore Ltd, NMDC’s Australian minerals exploration subsidiary, is considering taking greater control over its flagship iron ore project Mt Bevan in Western Australia.
At present, the deposit is being explored for a direct shipping ore project.
In a response to BusinessLine , Legacy Iron Ore said that its board of directors was considering a proposal to buy out project partner Hawthorn Resources Ltd, another Australian exploration company, which has a 40 per cent stake.
Exploration round Though Legacy Iron Ore is the project manager and owns a 60 per cent stake, a joint panel of both the partners decides the budgets for the Mt Bevan project. The two partners also proportionately fund the exploration expenditure of project.
Legacy Iron Ore has recently announced commencement of another round of exploration in the lease area and asked its partner to contribute 40 per cent of the cost of the field programme.
The company is now gearing up for a survey (mapping and sampling) of prospective areas within its managed key deposits at Mt Bevan.
It hopes to find hematite mineralisation for setting up the Direct Shipping Ore project. “The project will be rolled out in tandem with market demand for iron ore,” Legacy Iron Ore said.
Project hunting The company also said that its Board continues to look for projects that are advanced and close to production. “To this end, the company has examined several promising projects where permits and resources are in place to commence quick operations. Due diligence is being carried out,” it said.
For evacuation from Mt Bevan, rail and port facilities need to be upgraded. “Other options being explored are via consortiums keen to develop an infrastructure corridor,” the NMDC unit said.
Yilgarn Iron Producers Association, a consortium of exploration and mining companies in Western Australia, is looking for joint investment and ultimately joint access to infrastructure.
Legacy Iron Ore is also studying Mt Bevan’s other exploration assets (coal, base metal) to establish the quantum and quality of reserves.
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