Aquila Resources has announced an increased resource for its half-owned West Pilbara iron ore project, and pushed back again the completion date for its definitive feasibility study as it evaluates a contract mining model.
The Perth company also says the state government will make a decision by the end of the year on who will develop the new port at Anketell Point, near Karratha.
“Discussions with the state regarding port proponency are continuing with a decision expected by year end,” it said in a statement.
Aquila and Fortescue Metals Group are both keen to develop the port, to support their planned mining projects, though premier Colin Barnett has previously signaled that an independent third-party may be preferred.
The company said today that the Definitive Feasibility Study, to support the funding of its 30 million-tonne stage 1 development, “will be available early in Q4 2011”.
It originally predicted, in its March quarter report, that the DFS “is nearing completion and will be provided in the June quarter 2011”.
In early August, when it announced that the EPA had recommended environmental approval for the mine and rail components of the project, it said the DFS “is currently being finalised and is due for release in the next few weeks”.
A company spokesman said today that it was evaluating the merit of using a contract miner, instead of an owner-operator model, and this had added to the duration of the feasibility study.
In today’s update, the company said a preferred Project Managing Contractor has been identified and is expected to be formally appointed to coordinate the development of the project “in the near future”.
Aquila is also proceeding with an environmental review process for the port project.
It said the total JORC iron ore resource now totals 1.22 billion tonnes, an increase of 32 per cent on the previous estimate.
The West Pilbara is a 50:50 joint venture between Aquila and international investment group API.
