Peak iron mines
Focussed on High Grade DSO Hematite
Peak Iron Mines is a 100% Australian owned private company incorporated in Western Australia which owns the Peculiar Knob iron ore mine as well as the Hawks Nest magnetite/hematite exploration project.
The assets were historically owned and operated by Arrium Limited, an ASX listed mining and manufacturing business which went into administration in 2016 as a result of high levels of debt and a declining iron ore and steel market.
The Peculiar Knob mine is a historical production asset that was acquired by Arrium Mining in 2011 from WPG Resources for $320 million and operated between 2012 and 2015. The project was mothballed in 2015 due to low commodity prices. Arrium projected 2016 realised price of blended product: US$47/t
The project contains a remaining pit inventory of 6.8Mt @ 62.85% Fe, 8.97% SiO2 ,0.25% Al2O3 and 0.016% P and has a full logistics solution in place including an existing 96km sealed haul road to Wirrida rail siding, total rail line to Whyalla port of 635km as well as port storage and handling
In addition to Peculiar Knob which is expected to yield a mine life of ~3 years from recommencement, PeaK has acquired the Hawks Nest exploration project which hosts DSO hematite resources, hematite BIF units and a large, high grade magnetite deposit. The company expects Hawks Nest to provide long term ore supply into the already established infrastructure package of Peculiar Knob.
All of Arrium's assets, with the exclusion of Peculiar Knob and Hawks Nest which fall within a highly regulated foreign investment exclusion zone (The Woomera Prohibited Area), were acquired by GFG Alliance in 2017. As a result, Peak seized the opportunity to acquire these highly valuable, near term production and restart assets in mid 2019