A Tasmanian iron ore producer with eyes on production near Albany says the withdrawal of an environmental submission does not spell the end of its shipping plans at King George Sound.
A Tasmanian iron ore producer with eyes on production near Albany says the withdrawal of an environmental submission does not spell the end of its shipping plans at King George Sound.
A request for Environmental Protection Authority review of a plan to build a fifth berth at Southern Ports Authority’s Port of Albany and deepen anchorages – tied to Grange’s long-held ambition to build a magnetite mine called Southdown in the area – was withdrawn yesterday.
The request from Southern Ports had been with the EPA since 2023 and was a step toward the development of a project which has been in the works since 2004.
Its withdrawal cast doubts over Grange’s immediate plans for Southdown.
The 100 per cent owned project was slapped with a $2.3 billion price tag in a feasibility study update in April – a hefty cost which the project would pay back over more than eight years.
The company told Business News that the withdrawal of the port plan did not mean the end of its plans in the region, but said Grange was shopping for an equity partner to move things forward.
“The board remains positive about the future development of Southdown and is pursuing opportunities with investors who intend to act as JV partners for jointly developing Southdown,” A Grange spokesperson told Business News.
The company said it was looking at further work which could be done to improve the processes outlined in the feasibility study.
The study included Grange’s plan for a new wharf at Albany Port’s fifth birth, as well as the construction of a filtration plant, a concentrate stockpile shed and ship loading facility on King George Sound.
Under Grange’s current plans, ore would be transported by a 110km below-ground slurry pipeline to the port, where it would then be transshipped and exported. The project would produce 5 million tonnes per annum of magnetite concentrate.
A spokesperson for Southern Ports told Business News its activity around Grange’s project had been put on hold in 2024 as the miner sought project partners, and that the authority requested withdrawal of its proposal from the EPA process this month.
“Southern Ports remain committed to re-engaging with Grange Resources or any other prospective trade partner to understand and assess any future proposals for trade through the Port of Albany,” they said.
The Southdown mine has attracted public opposition in the Albany area, and a group called “Stop the Southdown Super Pit” was scheduled to host a meeting in town last night.
The group claims the proposed mine would be visible from local tourist sites including Bluff Knoll and the Porongurups.
The withdrawal of the port plan from the EPA process comes as Grange grapples with projected challenges at Savage River – its operating open pit magnetite mine in Tasmania where it hopes to go underground at a cost of $1.3 billion.
Financing for the development of the underground project is progressing, according to its most recent quarterly report.
Grange’s feasibility study for the underground project in Tasmania forecast production costs of $US94 per tonne over the life of mine, and $US80 per tonne once the project is complete in 2030.
Those costs could make the flagship project marginal, against a predicted drop in the price of iron ore from next year through to the end of the decade.
Grange said the average price of its Savage River pellet product had increased to $US124.15 per tonne last quarter, up from $US118.91/t a quarter prior.
The company ended March with cash and investments of $265 million.
Jiangsu Shagang Group – one of China’s largest privately owned companies and a major manufacturer of iron and steel – owns 47 per cent of Grange.
