Eyre Infrastructure Project (Iron Road)

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Eyre Peninsula freight capacity
Priority Project
Infrastructure Category
Transport
Proposed By
Private Sector
Timeframe
Near term (0-5 years)
Location
Eyre Peninsula, SA
Eyre Infrastructure Project (Iron Road)

Opportunity

Iron Road Limited, a publicly listed company, is proposing to develop an iron ore mine in South Australia’s Central Eyre Peninsula. When operating at full capacity, the mine is expected to produce 24 million tonnes per annum of 67% iron concentrate ore. The project would facilitate the transport of the ore from the mine to the coast, and its export through a deep-water port facility at Cape Hardy.

Project description

The company is proposing to develop a deep-water port at Cape Hardy, and a 148 km heavy-haul, standard gauge rail connection between the mine and the port. The proposed infrastructure would be available for other users (‘open access’), including grain exporters and other miners in the region, and the new rail line could potentially be connected to the National Rail Network.

Development of the rail and port infrastructure is subject to the mine development proceeding. The project is supported by the South Australian Government.

Economic, social and environmental value

Without the port and rail infrastructure, the economic activity associated with the mine, and the royalties and tax receipts expected to be derived from it, would not berealised.

The proponent’s stated benefit-cost ratio for the mine, rail and port infrastructure to Australia is 1.3, with a net present value of $3,800 million (7% real discount rate), representing a public net benefit for this privately-funded project.

Capital cost of initiative as stated by proponent (2015 business case) $6 billion (real, undiscounted)

Private sector contribution $6 billion