WA miners anxious to access logistics infrastructure have commissioned a supply chain study to investigate an Esperance Port upgrade
By Sean Muir | September 27, 2012
With smaller Western Australian
mining operations struggling for access to logistics infrastructure, the Yilgarn Iron Producers Association (YIPA) has commissioned a study to investigate a proposed upgrade of Esperance Port.
Golden West Resources General Manager Craig Ferrier says the supply chain study, which is not publicly available, supports a modest 10-15 million tonne per year upgrade of Esperance Port and incremental rail upgrades.
“We see the Port of Esperance as a very realistic option for transporting our product to customers,” Ferrier says.
“Within that (YIPA) study group there were both existing producers and those who are transitioning from the exploration phase to production, and the only thing that is delaying that is access to a port.”
Ferrier says access to infrastructure is still a major problem for miners, especially those with smaller operations, in Western Australia.
“Not just for Golden West and in Esperance, but in Port Headland and at other ports companies that have projects earmarked for taking product out through a particular port haven’t been able to develop as quickly as they would like due to the restraints on capacity,” he says.
“It’s a simply fact that you can only get so many tonnes through a particular piece of infrastructure.”
According to Ferrier the construction of a second berth at Esperance Port could boost the total port potential above 50 million tonnes per annum (mtpa).
“On the basis it is an existing port and it is a deep water port, so it can take capesize vessels, if you look at the entire supply chain, and that includes getting the product on a ship and to customers likely to be in China and north Asia, the ability of Esperance to accommodate capesize vessels is a massive attraction for iron ore producers,” he says.
“Capesize vessels can take up to 200,000 tonnes, versus some
of the other ports, which are limited to vessels
that can carry about 60,000 tonnes.”
Ferrier says
the State Government in January announced
intention to upgrade the port’s capacity to 20 million tonnes per year, and develop a multi-user iron ore facility accessible to smaller producers and potential miners within the Yilgarn iron province.
YIPA members Golden West Resources, Radar Iron, Mindax, Legacy Iron Ore, Mineral Resources, Cazaly Resources, and Cliffs Natural Resources commissioned the study, which modelled infrastructure from Yilgarn loading points to rail from Leonora and Koolyanobbing to Esperance to
car dumpers and loaders
onto
ships at Esperance Port.
Cliffs Natural Resources currently exports about 11 mtpa out of Esperance Port.
Preliminary results of the study have been shared with Esperance Ports Sea and Land (EPSL).
YIPA members are currently involved in a market sounding exercise facilitated by EPSL.