Murchison Metals Limited ('Murchison') is an Australian ASX listed company. Murchison is included in the S&P/ASX 200 Index.

The Company is aiming to create shareholder wealth through mining and exporting high quality iron ore to world markets.

Murchison is a 50% shareholder in Crosslands Resources Ltd ('Crosslands') which is the owner of the Jack Hills iron ore project located in the mid-west region of Western Australia. The remaining 50% of Crosslands is held by Mitsubishi Development Pty Ltd ('Mitsubishi'), a subsidiary of Mitsubishi Corporation, Japan's largest general trading company.

In addition, Murchison has a 50% economic interest in a new independent infrastructure business, Oakajee Port and Rail (OPR). OPR has the right to construct new port and rail infrastructure to service miners (including Crosslands) and other potential customers in the mid-west region of WA. The remaining 50% economic interest in OPR is held by Mitsubishi.

Murchison has a strong, experienced and energetic hands-on management team which will continue to support both Crosslands and OPR to become, respectively, a leading iron ore producer and a leading infrastructure business.

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Murchison Metals (ASX:MMX)

Company Directors

Mr James McClements (Non Exec. Director)
Mr John Westdorp (CFO)
Mr Paul Kopejtka (Executive Chairman)
Mr Rod Baxter (Non Exec. Director)
Mr Sun Moon Woo (Non Exec. Director)
Mr Trevor Matthews (Managing Director)

Contact Information

Phone: (08) 9492 2600
Email: info@mml.net.au
Website: http://www.mml.net.au/
Address
Level 1, 5 Ord Street, WEST PERTH, WA, Australia, 6005

Media Releases see all media releases

Murchison Metals Limited (ASX:MMX) Feasibility Studies and Market Update
04 Jul,2011 09:40 AM

FEASIBILITY STUDIES AND MARKET UPDATE
 
 HIGHLIGHTS
 
 - Crosslands and Oakajee Port and Rail (“OPR”) have delivered feasibility studies which indicate commercial, technical and operational viability, subject to OPR reaching agreement with potential foundation customers

- The results reflect nearly four years of intensive work and over A$400 million of expenditure by the respective project teams and mark a major milestone toward project execution

- Crosslands’ feasibility study on its Jack Hills Expansion Project (“JHEP”) is based on:
          - Average production of 23.4 million wet tonnes per annum (“Mwtpa”) for the first 10 years, comprising 22 Mwtpa of high purity iron concentrate products and 1.35 Mwtpa of direct ship products (“DSO”), with a total estimated mine life of 39 years, supplying the key Chinese, Japanese and Korean markets

          - Average operating costs of approximately A$33.66 per wet tonne (“wt”) of product, excluding royalties and before infrastructure charges

          - Capital cost of A$3.7 billion, inclusive of owners’ costs during construction (A$254 million)
 
- OPR’s feasibility study is based on:

          -  Development of an integrated port and rail supply chain with engineered capacity of 45 Mwtpa, with a planned contracted throughput of 42 Mwtpa

          - Average operating costs of A$5.45/wt of throughput

          - Capital cost of A$5.94 billion, inclusive of owners’ costs during construction (A$508 million)

          - Direct capital costs (before owners’ costs) of A$5.43 billion, versus A$5.24 billion for November 2010 Budget and Engineering indicative estimate (before owners’ costs) 
 
- Material approvals for both projects are well advanced

- While the Supply Chain Agreement (“SCA”) process between OPR and its potential foundation customers is incomplete, Murchison expects that all parties will ultimately reach agreement around commercial arrangements that are required to unlock the value of all of the projects in the region

- The studies assume Project Go Ahead (“PGA”) in the March Quarter 2012 with first shipping through Oakajee targeted for 2015. Murchison considers that this schedule is dependent on the timing of completion of SCAs and related milestones

- Murchison continues to review its funding options and opportunities

- Following the release of the feasibility studies, Murchison will continue with a strategic review that was commenced to maximise shareholder value

For more information please download this document.