05 Nov Roy Hill: Innovative Collaboration Driving World Class Results
It’s been a big year for Roy Hill and its Board. This year Roy Hill’s people have transitioned to even time rosters, the mine is operating at full production and heading to 60 million tonnes per annum (Mtpa).
The whole of Hancock Prospecting and the Roy Hill team is proud of what has been achieved in a few short years – from Hancock Prospecting’s work discovering the Roy Hill mine, studying it and completing a positive bankable feasibility study, converting the resource into a world-class mine, and achieving the fastest ramp-up to our 55 million tonnes per annum run rate in record time. Now in full production, the Roy Hill mine is currently employing more than 2,400 people – with plans to increase production to 60 million tonnes per annum in 2020.
With our daily mining capacity at more than one million tonnes per day, our operation continues to improve year on year without compromising our high safety standards. Our drive to continuously improve has achieved great outcomes, and the installation of our Wet High Intensity Magnetic Separation (WHIMS) plant in early 2020 will enable us to achieve our new shipping run rate of 60 million tonnes per annum.
Together, our efforts have been rewarded with Roy Hill named the 2019 Digger of the Year at the renowned Kalgoorlie Diggers & Dealers Conference – an achievement of which we are extremely proud. We were pleased that Mr Daniel Kwon from POSCO was able to join us at this special event and celebrate this important milestone as one of Roy Hill’s shareholders.
All we’ve achieved would not be possible without our valuable Korean partners and financiers – many of whom joined us at the very beginning of the Roy Hill project, forming a foundation on which we’ve continued to build lasting mutually beneficial relationships.
Not only is POSCO a Roy Hill shareholder but a key end user for Roy Hill iron ore, accounting for 28% of total sales in 2018. POSCO has also played an important role in fostering Roy Hill’s relationships with Korean export credit agencies KEXIM and KSURE, who joined with 19 commercial banks and three additional export credit agencies to fund the Roy Hill project in 2012.
Building on these important relationships, Roy Hill partnered with Samsung C&T and many subcontracted Korean businesses to deliver the construction phase of the project – which at the time was the largest commercial deal in the history of Australia and South Korea.
Today, it is because of POSCO’s relationships with Polaris Shipping and H-Line Shipping that Roy Hill’s iron ore is regularly welcomed by our Korean customers in the ports of Pohang and Gwangyang.
It’s no wonder the future of Roy Hill’s ongoing partnership with POSCO is bright – both organisations are committed to embracing innovation and technological development in order to continuously improve productivity and safety – corporate citizenship building a better future together. Mr Daniel Kwon from POSCO holds the Digger of the Year Award (second from the left) with Roy Hill, Marubeni and Hancock Prospecting representatives at the renowned Kalgoorlie Diggers & Dealers Conference in acknowledgement of all it’s achieved this year.
Once complete, the Roy Hill WHIMS plant will capture high grade ultrafine iron ore that would otherwise end up in the tailings dam, reducing our environmental impact while contributing approximately 4Mtpa of additional iron ore without increasing the amount of material mined.