01/12/2021

In another sign of South Australia’s burgeoning mining sector, a mining lease for the Buzzard Iron Ore Project has been granted to Peak Iron Mines, approximately 118 kms south-south east of Coober Pedy.

The Minister for Energy and Mining Dan van Holst Pellekaan said the sector is abuzz with news of new mines that will bring investment, more jobs and increased royalties to South Australia.

“Peak Iron Mines’ lease for its Buzzard project is the most advanced of a number of close proximity hematite and magnetite deposits located within the broader Hawks Nest project area,” said the Minister.

“The South Australian government is committed to ensuring South Australia reaps the full benefits of jobs and royalties its rich mineral deposits offer.”

Construction costs for the Buzzard project are expected to be around $26 million, with annual operational expenditure running at approximately $136 million. It is estimated that the project will generate over $30 million in royalties to the South Australian government.

The construction phase will create approximately 300 full-time equivalent jobs, with an ongoing operational workforce of another 153 full-time equivalent roles.

The current life of mine for the Buzzard hematite direct shipping ore is 5 to 7 years at an expected production rate of 2.5 million tonnes a year.

Peak Iron Mines is a 100% Australian owned company. It worked closely with landholders, native title groups and government departments to prepare its application for proposed mine operations. The grant of the mining lease is a result of the rigorous assessment process by the Department for Energy and Mining as lead regulator, the Department for Environment and Water, the Environment Protection Authority.

Peak is now finalising its program for environment protection and rehabilitation (PEPR), which is the final approval required to authorise on-ground operations to commence.

Peak’s Marnus Bothma said the grant of the Buzzard Project mining lease is a very significant milestone for Peak Iron Mines.

“Along with the company’s Peculiar Knob project, Buzzard is foundational in establishing the Peak Iron Mines as a long-term, sustainable iron ore producer in South Australia. The company would like to thank the Department for Energy and Mining, at all levels, for its ongoing support and particularly the transparency and assistance provided through the pre-lodgement and consultation process.

“The company is looking forward to working closely with the department and its local stakeholders to ensure the success of this project and its significance to the state of South Australia,” he said.

The vibrant energy and mining sector employs over 49,000 South Australians, generates over $320 million of royalties per annum and contributed $8.7 billion of the state’s economic output in 2020.

The South Australian Government’s Energy and Mining Strategy aims to support the sector to realise its potential by building on our strengths, leadership and capacity for innovation to increase exports to $13 billion by 2030.

Sourced from Department for Energy and Mining’s website: Buzzard Iron Ore mining lease paves way for 300 construction jobs