Opens Up Potential Development Of World Class Iron Ore Mine
Strike Resources Limited (ASX:SRK) is celebrating news that the Peruvian Prime Minister, Guido Bellido, has confirmed the Government’s plans to build a railway linking among others, Strike’s Apurimac Iron ore Project to the port of San Juan de Marcona.
In a recent presentation to the Peruvian Congress, Prime Minister Bellido said that the Railway Project will be carried out under a public-private partnership scheme. Local press in Peru have also recently reported that the Minister of Energy and Mines, Iván Merino, has said that the Railway Project could be started as early as 2023 and a first section could be inaugurated by President Pedro Castillo by the end of his term in July 2026.
In February 2021, the Ministry of Transportation and Communications (MOTC) estimated that the investment required for the 577km rail line would be approximately US$4.6 billion.
In 2019 the Peruvian Government, through the MOTC, commissioned a study by Ferrocarril del Sur (Southern Railway Study Group), being an international consortium (including a subsidiary of Dohwa Engineering from Korea) into the economic, social and technical aspects of building the Andahuaylas Railway.
Since the start of the Study, Strike has been working with the Southern Railway Study Group in the advancement of the Study as it is anticipated that Strike will be a major user of the proposed Andahuaylas Railway.
The Study has included an analysis of various railway route options, with the preferred route confirmed as one which commences directly at the Andahuaylas Airport adjacent to Strike’s Apurimac Project.
The proposed commencement point for the Andahuaylas Railway (adjacent to the Andahuaylas Airport) lies in close proximity to Strike’s Apurimac Project – the outcropping iron ore in the foreground of the photograph is located at the Opaban concession held by Strike.
Managing Director, William Johnson, said should the Andahuaylas Railway advance as planned with the commencement point located at the Andahuaylas Airport, it will deliver a large-scale transport solution directly to the doorstep of Strike’s iron ore resources at Apurimac.
This will dramatically reduce the capital costs for Strike of bringing the Apurimac Project into production as a world scale iron ore mine, as well as significantly improving the prospects for advancing the project.
There are a number of large mining companies which hold projects in the vicinity of Strike’s Apurimac Project which would also benefit considerably from the Andahuaylas Railway – indeed, it is the existence of these projects together with Strike’s (with the Apurimac Project likely being among the biggest users of the railway) that is primarily driving the Andahuaylas Railway initiative, which is seen to offer an unparalleled opportunity for Peru to unlock the substantial value of minerals located in this inland region, as well as passenger and other cargo traffic, including agricultural production which should have a positive social impact to stakeholders.
Mr Johnson said Strike is highly encouraged by the indicative timetable outlined for the construction of the railway outlined by the Minister of Energy and Mines and will continue to actively work with several of these large mining companies in Peru to consult with the Government and encourage the development of the Andahuaylas Railway.
“Having confirmation from the Peruvian Prime Minister for the construction of the Andahuaylas Railway is very encouraging for Strike,” Mr Johnson said.
“Development of the Andahuaylas Railway will allow Strike’s Apurimac Project to scale up to its full potential as a world class iron ore mine and deliver significant benefits for the Apurimac region, Peru, and Strike shareholders.”
For further information please visit: http://strikeresources.com.au/