Australian mineral resources company WPG Resources Ltd has announced that its $3 million prefeasibility study for the development of the Giffen Well iron ore project in South Australia is progressing according to plan, and is expected to be completed during the current quarter.
The project will consist of an open pit iron ore mine and magnetite concentrator atGiffen Well, and an open pit coal mine and power station at Penrhyn that will supply low cost energy to the iron ore operation.
13 million mt per year of magnetite iron ore will be mined to produce 5 million mt of iron ore concentrate per year with 68.5 percent Fe content. The plant will also produce hematite concentrate in the early years.
Meanwhile, the colliery will produce 400,000 mt per year of sub-bituminous black coal that will be fed to a 90-100 MW mine mouth power station that will produce low cost electric power for use at Giffen Well.
