Nordic Iron Ore AB has announced the results of the Pre-Feasibility Study (PFS) prepared by WSP Sverige AB for the Blötberget/Väsmanfältet Iron Ore Project near Ludvika.
According to the study, ore reserves at the Blötberget site increased from 34.1 million tonnes in the 2019 Definitive Feasibility Study (DFS) to 55.7 million tonnes. This represents an increase of 21.6 million tonnes, or 63%.
The total mineral resources of the Blötberget and Väsmanfältet sites were estimated at 104.5 million tonnes.
Annual iron ore concentrate production of 2.2 million tonnes planned
The PFS estimates a mine life of 23 years. During the production period, an average of 4.8 million tonnes of ore is expected to be fed into the processing plant annually, with average annual iron ore concentrate production of 2.2 million tonnes. Over the mine life, total plant feed is projected at 100.5 million tonnes, while total iron ore concentrate production is expected to reach 45.7 million tonnes. The concentrate is expected to have an average iron content of 67.5%.
The project is also expected to produce approximately 1.5 million tonnes of Apatite-REE concentrate as a by-product from the Blötberget site.
Project NPV estimated at USD 325.4 million
According to the Pre-Feasibility Study, the project’s after-tax net present value at an 8% discount rate (NPV8) was estimated at USD 325.4 million, while the internal rate of return (IRR) was calculated at 15.6%. The project is expected to have a payback period of 6.2 years.
Initial pre-production capital requirements were estimated at USD 446.6 million, while the net direct cash cost (C1) was calculated at USD 63.5 per tonne of concentrate.
Under the base-case scenario, a net sales price of USD 124 per tonne FOB Oxelösund was assumed for ultra-high-grade iron ore concentrate.
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