Mitsui makes $86m deal with Carpentaria on Hawsons iron project

Japanese trading house Mitsui has made an $86 million deal with Carpentaria Resources over the Hawsons iron project southwest of Broken Hill, New South Wales.

In return for a 2Mt/y option on Carpentaria’s high-quality Hawsons Supergrade product, Mitsui will contribute around 20 per cent ($5.4 million) of the project’s bankable feasibility study (BFS) cost and $81 million towards debt funding for construction of a new magnetite mine.

The Hawsons project is a joint venture (JV) between Carpentaria, which owns 68.7 per cent, and Pure Metals, which owns 31.3 per cent. The companies are aiming for 10Mt/y of iron ore production from the project, which has sent a mining lease application to the NSW Government. The BFS is one of the final stages before full production and is expected to be completed within the next 12–15 months.

In April, the project secured Major Project Status from the Australian Government, becoming one of 13 projects in the country to do so. The project is expected to create around 1200 construction jobs in the region and a further 500 jobs over its 20-year mine life, according to a statement from Senator Michaelia Cash, Minister for Jobs and Innovation, Western Australia (also from April).

Carpentaria managing director Quentin Hill said, “Mitsui’s record speaks for itself as one of the largest and most astute international investors in Australia’s resources industry.

“This investment validates the quality of the Hawsons Supergrade product and its ability to satisfy the demanding needs of customers in the high-value, high-growth iron ore markets of direct reduction iron and pellet feed.”

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.