Hawsons Iron Ltd, an emerging magnetite development company based in Australia, has provided investors with an important update on its Optimisation Works program. The program, carried out by the independent engineering firm Stantec Australia, seeks to explore the feasibility of incorporating dry grinding circuits into the company’s processing plant. The goal is to identify potential savings in water usage, energy consumption, and capital expenditure by investigating dry processing methods that could replace or supplement the existing processing flowsheet. This work follows a series of pilot plant trials conducted in 2023 and is considered a critical step in de-risking the project, particularly in terms of both cost and environmental impact.
Hawsons Iron is focused on developing its flagship Hawsons Magnetite Project in New South Wales, which is designed to produce high-quality iron ore concentrate. The company’s material is unique due to its combination of high competency and grindability, making it relatively soft and easy to grind. This property offers the potential for reducing energy consumption in the grinding process, which traditionally accounts for a significant portion of operational costs in iron ore projects. With this in mind, the company has been examining various dry grinding technologies to determine if they could provide a more cost-effective and energy-efficient alternative to its current wet processing flowsheet.
The Optimisation Works program evaluated several dry grinding technologies, including the Dry Two-Stage High Pressure Grinding Roll, Dry Tumble Milling, and Dry Vertical Roller Mill. These technologies were compared against the base case flowsheet, which had been designed by Stantec following the pilot plant trials in 2023. Six vendors, FLS, Metso, Weir, Loesche, Koeppern, and GEBR Pfeiffer, were approached to provide pricing and designs for their comminution circuits. Among these, the equipment costs provided by GEBR Pfeiffer for their VRM-based flowsheet were the most competitive, making it a particularly attractive option for further investigation. The potential for a 100% dry processing circuit, tailored to Hawsons’ material properties, emerged as a promising direction for the project.
Stantec’s early-stage analysis of the potential flowsheets indicated significant potential savings in both CAPEX and operational expenditures. For example, the primary crushing circuit, a key component of the flowsheet, would require a total CAPEX of AU$433 million for the GEBR Pfeiffer VRM solution, compared to AU$632 million for the original wet processing flowsheet. Additionally, the total annual OPEX for water and power costs would be AU$72 million under the dry processing option, a reduction from the AU$100 million estimated for the base case. These savings could be crucial in improving the overall economics of the project, making it more competitive and more sustainable in the long term.
The potential benefits of adopting a dry processing solution extend beyond just capital and operational savings. According to Hawsons, further test work could reveal additional advantages in areas such as water supply system development and energy supply and transmission costs. Most importantly, the reduction in water usage and energy consumption could significantly lower the project’s carbon footprint, aligning it with global sustainability targets and making it more attractive to investors and strategic partners. As part of the next phase of testing, Hawsons plans to conduct dry processing test work at a research facility, followed by a full pilot program in Germany in collaboration with GEBR Pfeiffer, the VRM vendor.
The research and test work planned for 2025 will be critical in refining the dry grinding circuit approach and ensuring its scalability for the full-scale plant. Hawsons has emphasized the importance of integrating the benefits of these potential improvements into the final terms of its agreements with strategic investors. Given the substantial impact these innovations could have on the project’s economics, the company is keeping its investors informed of the progress as it moves closer to finalizing its Definitive Feasibility Study.
Hawsons’ CEO, Tom Revy, highlighted the importance of these developments, noting, “The outcomes of this work have successfully demonstrated at a high level that significant savings exist with the incorporation of a primary dry crushing circuit. The unique properties of Hawsons’ material allow us to go down this processing path, and we will commence test work associated with a 100% dry circuit as a priority, given the further possible costs and environmental benefits to the Project.” Revy’s comments underscore the significance of these advancements in both enhancing the project's profitability and reducing its environmental impact, which is crucial in today’s increasingly eco-conscious market.
This Optimisation Works program is a crucial step for Hawsons Iron as it continues to develop its magnetite project. With a focus on cutting-edge technologies and sustainability, the company is positioning itself at the forefront of a more energy-efficient and environmentally friendly approach to iron ore production. As the dry grinding tests progress and further analysis is conducted, Hawsons is poised to make strategic decisions that could not only improve the project’s economic outlook but also reduce its ecological footprint, setting a new standard for the iron ore industry.
