Scoping Study Shows Economic Improvement at Malelane Iron Ore Project

Mining Weekly reported that iron ore development company, Ferrex (LON:FRX), claim that a scoping study conducted at its Malelane iron ore project located in Mpumalanga paved the way for a 65% increase in NPV of the project, valued at $523 million.

As quoted in the market news:

Ferrex MD Dave Reeves said the updated scoping study figures had substantially enhanced the project economics and indicated that, with the capital intensity expected to continue its downward trend, the project was within the first quartile of iron-ore projects worldwide.

The company believed that the reduction in operating costs meant that the project would still be cash positive at the recent price lows, which Reeves said highlighted the project’s economic robustness.

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