Peculiar Knob

overview

Initially owned by WPG resources who developed the project to BFS stage, all WPG iron ore assets were sold for $320 million to OneSteel (renamed Arrium)

WPG BFS Resource, before production, 19Mt @ 63.7% Fe, 7.5% SiO2, 0.3% Al2O3 and 0.02% P

2015 Production rate up to 4.4 Mt per annum totalling 9.9 Mt produced

Existing Infrastructure of approximately $120 million. Sealing upgrades to the haul road~$50M as well as pre-strip and rail loop construction

Resource characteristics: Very low alumina and phosphorous levels would likely yield a premium to benchmark With elevated silica levels leading to a slight discount

Targeted ~30% lump production, however Arrium elected to produce a 100% fines product

resource

infrastructure

Road Haulage:

96 km sealed haul road from the PK mine site to the Wirrida Rail Siding

 

Solution: JV proposal with MineHaul Pty Ltd to provide trucking fleet and services

Rail Haulage

~ 630 km Rail haulage from Wirrida Rail Siding to Whyalla Port

The rail haulage consists of two separately owned lines:

Tarcoola – Darwin line: Owned by Genesee and Wyoming Australia.Rail Haulage includes 130km on this line

Tarcoola – Whyalla line: Owned by ARTC (Federal)

Solution: A number of potential operators and rolling stock suppliers exist including GWA, CFCL, Bowman’s Rail, Pacific National

Contact

Level 11, 28 The Esplanade

Perth, WA 6000

marnus@peakiron.com