Braemar Iron Alliance is likely to invest more than $7 billion at a new iron ore project near Broken Hill. As per the company the area between Peterborough in South Australia to Broken Hill is likely to become Australia's next major iron ore province.
Andrew Woskett the managing director of the Minotaur Exploration said that an upgrade of the rail network between Broken Hill and Spencer Gulf would be needed. He said that part of the $7.65 billion investment would be used for upgrading the whole rail network.
Mr Woskett also said that besides that there would be another $500 million needed for the trains that will be used to cart the 25 million tonnes of the total output from the mine down to the wharf. He also said that the mine would try to use some renewable energy in its total 500 megawatts of power.
The reference to the current carbon tax of the Gillard government was clear when Mr Woskett said that in this sort of economic climate, and this environmental climate that we're moving into with climate pricing et cetera, it would be nice, and it would be preferable, to be able to source this level of power from a renewable source.
Luckily Braemar has a new geothermal energy project coming up in the north. This along with some solar power generation will aid in the power generation needs for the mining project.