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Hawsons Iron (ASX:HIO) eyes 20Mtpa production from namesake project

ASX News, Materials
ASX:HIO      MCAP $30.33M
16 June 2022 10:34 (AEST)

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Hawsons Iron (HIO) has directed its bankable feasibility study (BFS) to solely focus on developing a 20 million tonne per annum (Mtpa) for its Hawsons iron project in New South Wales.

Whilst capital costs are expected to increase, the BFS team expects an offset from the project economics and potential environmental, social and governance (ESG) outcomes.

In addition, the company executed a non-binding memorandum of understanding (MOU) with Flinders Ports, which will potentially see assistance with its port for exports.

Under the MOU, Flinders Ports will cooperate on the design, construction, and operation of the Myonie Point Port.

This underpinned the company’s BFS decision as capital requirements for the project are expected to be reduced. 

The company said the development of a 20 Mtpa magenitite mine would require a review of the project’s schedule to map out a plan to construct a slurry pipeline to the port.

Chairman Dave Woodall said the BFS is targeted for completion in December, with first production anticipated for the second half of 2024.

“The team of leading global partners and specialists we’ve engaged to complete the BFS now have the additional information required to undertake detailed engineering design and update the project’s estimated delivery timetable which we will release once completed,” he said.

Shares in the company were up 11.7 per cent, trading at 43 cents per share at 10:07 am.

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