Iron valley

The Iron Valley iron ore project is located approximately 50 kilometres east of Tom Price and about 90 kilometres northwest of Newman, in the Eastern Pilbara region of Western Australia. It is situated near a number of other iron ore open cut mines, namely the giant Rio Tinto Hope Downs and Yandicoogina mines, BHP Billiton's Yandi and Fortescue Metals Group's Cloudbreak, all world class mining operations.

Iron Valley Project Acquired by BC Iron Limited

The Iron Valley project was acquired by BC Iron Limited when it took over its previous owner, Iron Ore Holdings. The acquisition was made subject to an original agreement Iron Ore Holdings had regarding the project with, Mineral Resources Limited, being honoured. As at August 2015, the project has an iron ore Mineral Resource of 246.8 million tonnes grading at 58.4 percent iron, as well as an Ore Reserve of 129.9 million tonnes, grading at 58.9 percent iron.

Mineral Resources Continues Operation of Iron Valley Project Despite Ownership Change

The Iron Valley project began exporting DSO (direct shipping ore) in October, 2014, under the operation of Mineral Resources Limited. The operation followed the traditional truck haulage type of open pit mining, with Mineral Resources operating the mine at its own cost, while purchasing the ore from BC Iron at a price linked to Mineral Resources realised sale price.

Agreement to Operate Iron Valley Mine Altered to Suit Changing Economic Conditions

At the end of 2014, Mineral Resources and BC Iron, renegotiated their original agreement, to allow the mine to continue operating, while taking into account the lower iron ore price at the time. The new agreement took into consideration the beneficiation of Iron Valley ore as well as a new bulk ore transport system, innovations that would benefit both parties economically.

BC Iron Limited was established in 2006 as a result of Ukranian based Consolidated Minerals and Alkane Exploration becoming amalgamated in order to share their Pilbara assets. The new company was listed on the Australian Securities Exchange (ASX) in December 2006 and quickly set about changing its focus from being an exploration company to a mineral miner in little over four years.

Iron Valley Project Survives despite low Iron Ore Prices

At the end of December 2015 BC Iron took the decision to suspend its own direct shipping ore mining operations due to falling global iron ore prices. It is currently focused on working closely with Mineral Resources Limited at the Iron Valley mine in supporting Mineral Resources initiatives in introducing bulk ore transportation and beneficiation improvements.

The acquisition of Iron Ore Holdings assets in August, 2014, by BC Iron, delivered BC Iron a substantial increase to its Pilbara iron ore reserve and resource base, principally in two major projects, the Buckland project and the Iron Valley project, along with other early stage projects and a royalty income from some third party projects.