About API
Australian Premium Iron Joint Venture (APIJV)
APIJV is an unincorporated joint venture between AMCI (IO) Pty Ltd and Aquila Steel Pty Ltd (Aquila). Each company holds a 50% participating interest in APIJV. APIJV was inaugurated in February 2005 with the objective of developing a long-term iron ore export operation located in the Pilbara region of Western Australia. The APIJV controls a large mining tenement portfolio comprising 8,000 km² focused in the west Pilbara.
The APIJV is managed by API Management Pty Ltd (APIM) based in Perth, Western Australia.
Management Structure
Management Structure Diagram to go here
Project Ownership Structure
Projects
West Pilbara Iron Ore Project
The West Pilbara Iron Ore Project (“WPIOP”) is one of the largest independently owned undeveloped direct shipping iron ore projects in Australia, held by the Australian Premium Iron Joint Venture Partners (‘API JVPs’) – Aquila and AMCI(IO) (held jointly by AMCI and POSCO).
Development initiatives are focused on the Red Hill Iron Joint Venture (‘RHIOJV’) held Channel Iron Deposits (‘CID’), located 30 km to 85 km south of Pannawonica; and on the Hardey Bedded Iron Deposit (‘BID’), located ~50km north west of Paraburdoo.
RHIOJV Development
In September 2021, Mineral Resources (MRL) agreed to acquire a 40% stake in the RHIOJV from Red Hill Iron Limited. The RHIOJV holds 820Mt CID iron ore resources.
In August 2022, RHIO JVPs made an unconditional final investment decision to develop the RHIOJV iron ore assets as part of MRL’s Ashburton hub development. Stage 1 will target 35 million tonnes per year.
MRL has been appointed Manager of the RHIOJV and has commenced long-lead items procurement and early works to support a development timeline targeting FOOS in 2023.
MRL will earn an additional 17% participating interest in the RHIOJV in exchange for funding RHIOJV capital expenditure of $1.3 billion by way of a carried expenditure loan until commercial production.
Growth Potential
While API’s current focus is on developing the RHIOJV Iron Ore Project, the WPIOP also boasts significant further growth potential. With a total JORC Resource of 2,837Mt across the extensive WPIOP tenement portfolio in the Pilbara, API JVPs are well positioned to develop further projects in future. There is also significant potential for further growth in iron ore resources on Aquila’s extensive tenure footprint.
Exploration
West Pilbara Iron Ore Project
The West Pilbara Iron Ore Project (WPIOP) is a large iron ore and infrastructure project proposed for the Pilbara region of Western Australia encompassing integrated mining, processing, haulage and port operations.
There is potential for considerable project growth underpinned by total JORC (2012) iron ore resources in excess of 2.6 billion tonnes. Future growth is supported by ongoing exploration activity across API’s highly prospective tenement portfolio, which covers a large area (8,000 km²) across the Western Pilbara region.
WPIOP Mineral Resource
A targeted and methodical exploration programme has progressively increased the iron ore resource base since exploration commenced in 2005. The API global resource base for the Project exceeds 2.6 billion tonnes, comprising Channel Iron (CID), Detrital Iron (DID) and Bedded Iron (BID) deposits.
Iron Ore Products
The WPIOP iron ore resources identified to date are ‘direct ship’ iron ore, suitable as feedstock for iron and steel manufacturing without the need for extensive beneficiation to remove impurities.
The RHIOJV development will deliver pisolite iron ore derived from a number of channel iron deposits. Ore from the deposits will be mined to a defined schedule, crushed and blended to achieve a primary fines product of consistent grade exceeding 57% iron.
Based on sinter tests completed at the China Iron and Steel Research Institute (CISRI) in Beijing, the product may be used at levels comprising 10-15% in sinter plant feed blend, with the potential for levels as high as 20-25%.
The Hardey development will access bedded iron and marra mamba deposits targeting iron grades of greater than 60%. These deposits are expected to yield lump and fines shipping grade products.
Environment & Community
As a substantial resource development, implementation of the West Pilbara Iron Ore Project will bring change for communities and the environment local to the development. API Management Pty Ltd (APIM) recognises the importance of balancing social, economic, safety and health, and environmental aspects in all phases of its business and is committed to undertaking its activities in a manner that considers the values of the people, natural environments and communities in which it operates.
An important aspect of this commitment is to engage with communities and stakeholders including government, local land holders, Traditional Owners, non-government organisations, local businesses, and other groups to discuss concerns and explore opportunities for stakeholders, presented by the project.
Maintaining a thorough understanding of the existing environment and the communities in which we operate is an essential part of this.
APIM has invested heavily in completing extensive studies including heritage surveys, and consulted widely to inform the design and environmental impact assessment of the West Pilbara Iron Ore Project. These studies commenced in 2007 and have continued through to the present as design changes and newly optimised development strategies are considered. Development strategy changes occur to accommodate newly identified ore deposits and further optimised supporting mine, rail and port infrastructure components.
APIM has active Environment, Safety, Community and Indigenous engagement polices that provide overarching objectives and direction for management. These are supported by other corporate policies including the APIM Risk Policy that provides guidance on a systematic framework for managing environmental, community and safety risks associated with the design and implementation of the Project.