Jupiter Mines has launched a process to review its strategic options in restarting its Central Yilgarn iron ore projects located in Western Australia.
|Project locations. ©Jupiter Mines|
The assets, comprising the Mount Mason DSO Hematite and Mount Ida Magnetite projects were placed under care and maintenance in 2014 and 2012 respectively, and hold great value – particularly in the current iron ore market – in light of the drive towards higher grade iron ore feed in China and potential capacity on the rail and at port.
According to a company statement, the advanced nature of these projects, their proximity to established and available infrastructure, the size and quality of the mineral resources and ease of mining and ore extraction “provides an attractive opportunity to commence high-grade DSO hematite production and high-grade magnetite concentrate production that could underpin quality long-term supply”.
Jupiter has appointed Hartleys Limited as corporate adviser for the structured process to realise value for these projects.
This process will not require further funding nor will future dividends from Tshipi be utilised. This will ensure that Jupiter adheres to its stated dividend policy and near 100 per cent payout history.
They were placed under care and maintenance in 2014 and 2012 respectively.
The projects have incurred significant expenditure in the past to elevate them to their advanced production-ready level, according to Jupiter in an ASX statement.
“The projects are located in a low risk established mining region of Western Australia, just over 100 kilometres by road to the Yunndaga rail siding and within close proximity to Mineral Resources’ (ASX: MIN) Koolyanobbing iron ore mine,” stated Jupiter.