Ironclad Mining

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Ironclad Mining Limited (Ironclad) is an Australian company that was originally established to accelerate the development of the exciting Wilcherry Hill iron ore deposits located 40 kilometres north of Kimba on South Australia’s Eyre Peninsula. The company, as it seems, has a lot going on.

On February 11, Ironclad announced that it signed a memorandum of understanding with  Linzhou Iron and Steel Co. Ltd of China, for the sale of a minimum of one million tonnes of Direct Shipping Ore (DSO) a year from Wilcherry Hill. The release stated that not only are they ramping up production, but expect to fast track the Wilcherry Hill project by the fourth quarter of this year “up to two million tonnes a year of DSO.”

Project partnerships

According to Ironclad’s website: “The Wilcherry deposits contain coarse crystalline magnetite and low silica contents which enable low cost and efficient production of concentrates containing over 70 per cent Fe with very low impurity levels. In addition, metal recoveries of over 95 per cent and mass recoveries of up to 75 per cent, are significantly higher than typical Australian banded iron formation (BIF) magnetite deposits.”

Ironclad says that its marketing strategy is to “establish long-term relationships with substantial and stable offtake partners, as well as retain the ability to sell some of its high quality iron ore product into the lucrative spot iron ore markets.” Liuzhou Iron and Steel Co Ltd (LISCO) is one of these partners. The company is a medium sized Chinese integrated iron and steel company listed on the Shanghai stock exchange. Clearly, Ironclad knows where to focus its energy.

Slowing burn rate and staying smart

Ironclad has made some shrewd moves in order to become a powerhouse in the iron ore industry, despite its relatively small size, and a relatively shaky economy. Ralph Winter of Ironclad tells IRJ that “Ironclad bunkered down during the global financial crisis, in an effort to slow our monthly burn rate of capital to ride out the downturn. True, Australia wasn’t as drastically affected by the downturn as most other countries; however, there was a definite slowdown.”

Nevertheless, Winter adds that partnering with China was the right move, and indicative that the pace would pick up: “Having been to China, and seeing first-hand the scale of growth and the long-term plans in place, we had no doubt that the slowdown was only temporary.”

Ironclad says that the affects of the downturn instigated a “halt and preserve” attitude, and in light of that position, post the crisis, Ironclad took on an additional $1 million drill program to define its Direct Shipping Ore (DSO) Magnetite (which has proved a low-cost entry into production for the company and has accelerated its focus on achieving production by the fourth quarter of 2010).

Management and culture

Ironclad maintains that their strength as a major ore player is the direct result of an excellent management team. Management has lead Ironclad in the right direction:  being responsible to its shareholders, the environment and communities and being, to the best of their knowledge, “the world’s first in the export of Direct Shipping Ore Magnetite.”

Winter says that “As a small company, we have a firm belief that communication with our shareholders is key. We believe that every shareholder has a voice and should they want to, they are more than welcome to phone up and speak to the directors of the company.” Truly, Ironclad is dedicated to their stakeholders.  
The company has an extensive marketing and PR strategy in place which sees its employees attending conferences around Australia, serving to promote the company and the uniqueness of their projects, and maintaining the constant flow of information to current and potential shareholders.

Ironclad is also committed to sustainability, another area driven by the management team. The company assures that “from day one, we realised that the social and environmental impacts of a company heading towards production could be significant.” Ironclad has always consulted with all relevant bodies to complete long-term studies required, to “ensure that operations would not have a negative effect on the local communities or the surrounding environment.”

Ironclad Mining remains firmly committed to the aspiration of zero harm, and is establishing thorough health, safety, environment and community (HSEC) policies, systems and procedures to ensure all activities are conducted in a sustainable way. The company website states that “legal requirements will be the minimum standard with leading practices adopted where practical” and “positive and constructive relationships have been established with the local community and local and State Government.” Additionally HSEC Manager is being appointed in Adelaide to ensure sound systems are implemented, environmental approvals are achieved, and stakeholder relationships are bolstered.

In short, a company is only as strong as the people who lead it. Winter says that “Ironclad’s culture is very dynamic and maintains a tight structure that can adapt very quickly to changing conditions. It is these dynamic cultures which lead to the development of the Wilcherry Hill Direct Shipping Ore magnetite. Had we been a slow moving company we would still be waiting for Port Bonython to be built to begin production—but as such we have found a transport route out of Port Adelaide which will get the company producing two to three years earlier than initially expected.”

Ironclad’s success story continues

Ironclad tells IRJ that there are several milestones that they hope to achieve in 2010. The first, according to Winter, is the completion of the bankable feasibility study “which we intend to have completed by the end of March 2010.” The second anticipated milestone is the completion of all the requisite approvals which are required to get into production.

“The final milestone will be the commencement of production by the last quarter of 2010,” the company explains. They say that the completion of the Bankable Feasibility Study itself will “be significant to both the company and the market.”

All in all, Ironclad has made it its mission to put their money into the ground and try to avoid risk as much as possible.  Ironclad “has a wealth of both historical drilling and drilling conducted by the company” and is set to reach new heights in the months and years to come.

www.ironcladmining.com