Minerals explorer and developer Cyclone Metals has marked a substantial derisking milestone at its flagship Iron Bear project in Canada, with a study by global engineering group Hatch confirming that the iron-ore mine and concentrator complex can be fully powered by renewable energy.
The study also evaluated power solutions for the nearby town of Schefferville, Quebec.
“The study demonstrates that Iron Bear project benefits from a privileged access to complimentary renewable hydro and wind power, which drives lower than expected unit power costs and will also translate into a very low carbon emissions for our green steel iron-ore products," said said CEO and MD Paul Berend.
The Hatch-led analysis assessed three staged development scenarios for Iron Bear’s power needs.
The initial 120 MW requirement for a 10-million-tonne-a-year concentrator (Phase 1) would be met by a 60 MW hydro plant at Menihek and a 280 MW wind farm, supported by a 10 MWh battery energy storage system. This would require capital expenditure (capex) of C$806-million to C$2.22-billion.
Phase 2 would scale up to a 25-million-tonne-a-year operation requiring 250 MW at a capex of C$1.68-billion to C$6.7-billion, while Phase 3 would support 50-million tonnes a year of output with a 500 MW demand and a capex investment of C$3.2-billion to C$8.9-billion.
In the latter stages, the additional energy would be delivered through new high-voltage connections to the Churchill Falls hydroelectric facility, operated by Newfoundland and Labrador Hydro.
The Iron Bear project is central to Cyclone’s strategy to supply low-emissions iron-ore for green steel production, leveraging Canada's renewable energy resources. The completion of the power study helps advance feasibility work. 