Hawsons Iron's New Dry Milling Process Promises Significant Savings
HIO (HIO) Share Update November 2024 Monday 18th
Hawsons Iron Identifies Cost-Effective Dry Milling Process
Hawsons Iron Ltd (ASX:HIO) has announced promising results from its Optimisation Works program, suggesting substantial cost savings through a new dry milling process.
Instant Summary:
- Potential capital cost savings of approximately 30%.
- Operating cost reductions estimated at 25-30%.
- 100% dry circuit to be prioritized for further investigation.
Overview of the Optimisation Works
Hawsons Iron Ltd, an emerging magnetite development company, has released an update on its Optimisation Works program. Conducted by Stantec Australia, the program aimed to explore dry grinding circuits as a cost-effective alternative to the current base case circuit. This initiative focuses on reducing water, energy, and capital expenditure.
The technologies evaluated include dry two-stage HPGR (High Pressure Grinding Roll), dry tumble milling, and dry VRM (Vertical Roller Mill). Six vendors, including FLS, Metso, Weir, Loesche, Koeppern, and GEBR Pfeiffer, were consulted, with GEBR Pfeiffer's VRM flowsheet emerging as the most cost-effective option.
Potential Benefits and Next Steps
The review indicates that a 100% dry processing circuit could offer significant cost, environmental, scheduling, and permitting benefits. The project could see improvements in water and energy supply systems, as well as a reduced carbon footprint.
Further test work will be conducted in a research facility before a full pilot test program in Germany. The results of the 100% dry processing test work will be crucial in defining the final flowsheet, anticipated for 2025.
The potential cost savings and environmental benefits from the new dry milling process could significantly enhance the project's economic viability. This development might positively influence Hawsons Iron's stock price as investors respond to the improved project outlook.
Investor Reaction:
Analysts are likely to view this announcement positively, given the potential for reduced costs and increased project value. However, the final impact will depend on the outcomes of further test work and the integration of these improvements.
Conclusion:
Investors should keep an eye on the upcoming test work results and the finalization of the dry milling process. Hawsons Iron's strategic implementation of these improvements will be key to maximizing project value and investor confidence.