Cairn Hill

Cu-River purchased the Cairn Hill mine in South Australia, previously operated by IMX Resources, then Termite Resources ML, in 2014. Cairn Hill (ML6303) is located approximately 850km north-west of Adelaide and approximately 50km southeast of Coober Pedy. After an extensive $20 million upgrade, Cu-River commenced iron ore exports in June 2016 and produced and exported one million tonnes of ore in its first 12 months of operations.

In addition to this operating mine, the company holds four exploration licences totalling about 3,000 km2 in broadly the same vicinity as Cairn Hill.

The project is easily accessed from the south via the Stuart Highway, then via a 14km long and 15m wide unsealed double lane road. Ore is hauled approximately 60km from the mine site to the Rankin Dam Rail Siding via a single lane underpass under the Stuart Highway, constructed to ensure the ore is transported safely and efficiently. The rail siding is approximately 1,500m long and was selected to minimise environmental impact to the area by using existing transport infrastructure. Product is transported by rail along the Darwin-Adelaide rail line to Port Adelaide for export.

Cairn Hill is one of only two iron ore producers in South Australia. It produced and exported one million tonnes of iron ore in a little over its first year of operation.

Production was paused late in 2017 to allow for approvals to be granted and construction work to be undertaken on upgraded infrastructure at the site, which will include a Wet Processing Plant, worker accommodation village and power station.

When mine production resumes, the plan is to produce 3 million tonnes of ore annually (3Mtpa) from Cairn Hill, with a long-term goal of producing 15Mtpa (subject to approvals) when additional nearby resources are brought into production.

Cairn Hill created more than 60 direct jobs and contributed around $10 million to the South Australian economy in 2015-2016. Cu-River also received a regional development grant from the South Australian government in 2016 which was used for infrastructure development. Employment numbers have been reduced while the mine is in production pause but will increase again when infrastructure construction begins (subject to government approvals) and when the mine re-opens.

Cu-River lodged the Program for Environment Protection and Rehabilitation (PEPR) application to develop Cairn Hill pits 3 and 4 in August 2017 and this has been approved by the SA Government.

The detailed study and design on the Cairn Hill Wet Processing Plant has been completed, based on an estimated annual production of up to 3 million tonnes of iron ore concentrate. This work forms part of a separate PEPR which is scheduled to be lodged with the SA Government in the second half of 2018.

Infrastructure construction work will commence as soon as approvals are in place and active mining will follow.