📋 About: Iron Road (ASX:IRD) is developing a green hydrogen project for iron ore pellet production at South Australia’s proposed Cape Hardy port.
🌏 Macro Themes: With stimulus spending accelerating across the recovering/ post-pandemic globe, iron ore commodity pricing and demand are high, and expected to remain so
Central Eyre Iron Project (CEIP)
IRD is the 100% owner of the Central Eyre Iron Project (CEIP), a well advanced, long-life (22 years) iron ore mining, beneficiation and infrastructure development on the Eyre Peninsula, South Australia with excellent mine, road and port infrastructure. IRD has spent approximately $160 million on this project already, meaning it is extremely well-advanced.
Cape Hardy Port
IRD is also developing a multi-user, multi-commodity port infrastructure that can handle Capesize ships, facilitating the export of a wide range of bulk commodities, including Iron Road’s iron ore. The $250M stage I project is being financed by development partners Macquarie Capital and Eyre Peninsula Cooperative Bulk Handling (EPCBH). It is also supported by a $25M Federal Government grant commitment. Construction will start shortly after financial close in Q3, 2021, with completion in early 2023 and IRD will own 25%.
Large-scale green hydrogen production and export hub
Finally, IRD is working with the Hydrogen Utility (H2U), Cape Hardy’s other partner, for the development of a large-scale green hydrogen production and export hub at Cape Hardy, extending over an area of 200ha. H2U intends to build a $240M green ammonia plant at Port Bonython near Whyalla and plans to build a far larger facility at Cape Hardy.