Projects >> Yalgoo Iron Project
Project Overview
The Yalgoo Iron Project concept envisages the mining of magnetite iron ore from the Yogi deposit, which is 100% owned by Ferrowest and located 14km east of Yalgoo in the mid west region of Western Australia. The magnetite ore would be crushed and fed into a beneficiation plant, to be located at the mine site to produce around 1,500,000 tonnes per annum of magnetite (iron ore) concentrate grading 67% Fe.
Project Location
The location of the Company’s 100% owned iron ore deposit, called "Yogi".
Geology & Mining
Ferrowest has 100% ownership of the Western Australian mineral tenements covering about 30,000Ha that are collectively known as Yogi. These mining and exploration leases form the basis of the Yalgoo Iron Project.
Project Infrastructure
The Project is located 14km from the rural and mining township of Yalgoo, which is expected to house the mining and operations staff for the Yogi mine and beneficiation plant.
Magnetite Concentrate Production
The first stage in manufacturing the MPI is to produce magnetite concentrate grading 67%Fe. This occurs in a beneficiation plant.
Merchant Pig Iron Production
Ferrowest’s preferred technology for the production of MPI is the ITmk3® process from Kobe Steel that has excellent potential for the Yalgoo Iron Project. The ITmk3® process is in the final stages of commercialization at full scale in Minnasota USA. The Company’s choice of this technology is contingent on this first plant commissioning successfully, which is expected to be determined this year.
Merchant Pig Iron Use
The 96%Fe MPI can be used in any steel making plant in the world as a high quality source of pure iron units but it is in the EAF steel making plants that MPI has the greatest value in use.
Markets for Merchant Pig Iron
MPI is a commodity that is expected to be in strong long term demand. Continuing Asian growth, the resumption of worldwide steel production growth and reduced scrap availability from historical scrap supplying countries like the CIS is likely to see demand for EAF feedstock (scrap iron, MPI, DRI & HBI) remain firm. There appears to have been insufficient investment world wide in new MPI production capacity.
Project Capital & Operating Cost Estimates
This section provides indicative capital and operating cost estimates for the Yalgoo Iron Project. A conservative approach has been taken to cost estimates and further optimization of the project economics is likely as the detailed engineering and other studies are further advanced.
