Brockman shows iron resolve

In 2003, the managing director of Yilgarn Mining foresaw that demand for iron ore was going to boom and set out acquiring a string of iron ore leases. Five years down the road, the commodity is now Western Australia's largest individual mineral sector by value.

The original company is now known as Brockman Resources Ltd, a junior player in the sector listed in the ASX (code: BRM).

"Right now, we know we have a resource of 1.1 billion tons, with the potential of 680 million tons of the final product which means the project can operate at a rate of 20 million tons per year for 30 years. That's a long-life mine and we haven't finished drilling yet," said Managing Director Wayne Richards.

Richards joined the company from BHP Billiton in August 2007 and immediately set about reorienting the company's culture, business structure and strategy towards iron ore.

"I have come up with the 'Four Ls' - lithology, location, logistics, and longevity," said Richards.

The Marillana iron ore project, a haematite deposit, is the company's key asset. Its direct ship and beneficiated ores have grades of 57.5 percent to 62 percent iron. The ores can be sintered to produce a blast furnace feed of 59 percent to 64 percent iron.

The oversubscribed project, which raised $108 million, is favorably located in the Pilbara region, 100 km from Newman and 250 km southeast of Port Hedland. A BHP rail line runs through the full length Brockman's lease, which is not far from Cloudbreak, FMG's train line or Rio's Hamersley line.

"We are a well established company with great technical capabilities and expertise within the management group and have demonstrated our ability to run a project from cradle to grave," said Richards.

Brockman's five-year plan will accelerate development of its iron ore project to meet rising global demand and eventually build itself into a multiple resource company.

Amid those ambitious plans, China forms a vital part of the company's marketing and financial strategies.

"We're quite open to doing business in China. At the moment, it looks very symbiotic and a win-win because they are seeking long-term continuity of supply and we're looking for long term marketing agreements and finance," said Richards.

www.brockman.com.au

(China Daily 08/07/2008 page41)