Cazaly Resources Seeks Iron Ore Development Partner in Japan

Cazaly Resources, Australian resource company, plans a iron ore co-development project in West Australia with Japanese enterprise. The firm aims to open a standalone iron ore mine with 4 million tonnes annual output in competition with conventional major resource companies and Chinese enterprises. The firm will start the shipment in the middle of 2011 by utilization of existent rail ways and ports. Cazaly Resources is seeking Japan’s business partner to cover the development cost estimated at around A$ 100 million. The firm eyes maximum 50% equity of the project for Japanese steel makers or large dealers.

Mr. Clive Jones, Cazaly Resources’ president, and Mr. Philip Kirchlechner, the firm’s marketing consultant, told Japan Metal bulletin’s reporter on October 27th that they strongly expect for cooperation with Japanese reliable enterprises. The firm will complete feasibility study of Parker Range iron ore project in Yilgarn iron province, 400 kilometers east from Perth, at the end of November. Phosphorus’ purity is below 0.015% for iron ore of 56-58% purity in Yilgarn. Ore grade is high at 62.2-64.4% except for Loss of Ignition (LOI) at 10%.

Cazaly Resources plans to transfer iron ore by trucks for first 60 kilometers from the mine, transit to the railway to Kwinana port or Esperance port. These ports have the available capacity at 5 million tonnes per year. The firm can save money for large infrastructure construction.

The mine is expected to maintain the operation at 2-4 million tonnes per year for 6-8 years. Cazaly Resources targets to confirm iron ore reserve at 100-250 million tonnes and extend the operation for 15-20 years.

Cazaly Resources got listed on the Australia Stock Exchange in 2003, who aims mine development for iron ore, gold and uranium as the forth supplier in Australia.