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Published: November 4, 2026 |
Grange Resources said its board of directors has made a final investment decision for the North Pit Underground Project at its Savage River Iron Ore Pellet Operations in northern Tasmania.
The decision to proceed with the underground project follows a number of recent key project optimization studies, with the North Pit Underground Project proceeding as a sub-level cave (SLC) development and operation. This development will be at a significantly lower initial capital requirement compared with the previously considered block cave development, while preserving optionality to progress to a block cave in the future.
“The sub-level cave development is a significant step for Grange and for Savage River operations. It secures our ability to continue supplying high-quality pellets to customers well into the next decade. It also maintains our options as we build the foundation for a large-scale underground mine. This represents a significant investment in our operation and our community,” said Grange’s Chief Executive Officer Weidong Wang.
STAGED UNDERGROUND STRATEGY
Since 2018, Grange has progressively evaluated underground mining beneath North Pit as the means of extending mine life at Savage River. A prefeasibility study, supported by an exploration decline, resource drilling, and a bulk sample, found both block cave (BC) and sub-level cave (SLC) mining viable.
The definitive feasibility study for a large BC followed in February 2024, independently reviewed by technical consultants with no fatal flaws identified. Integration with the open pit, engineering, permitting, and decline extension then progressed. An independent technical expert review in 2026 confirmed the project was technically credible. However, weaker iron ore prices, rising costs, and reduced risk appetite meant the BC could not be funded at the required scale.
In response, the board has approved the lower-capital SLC, while preserving the option of a future block cave. The SLC development represents the least-cost option to transition to underground mining.
NEXT STEPS
Management will now proceed to award mining contracts and mobilize, targeting commencement of underground development in Q1 2027, while progressing studies, optimization and funding work for future stage decisions.
As part of the transition to underground mining, the company will continue workforce planning and its transitional plan to support its evolving operational requirements.
Grange Resources is Australia’s most experienced magnetite producer with more than 59 years of mining and production from its Savage River mine. Grange’s operations consist principally of owning and operating the Savage River integrated iron ore mining and pellet production business located in the north-west region of Tasmania. In addition, Grange owns a major magnetite development project at Southdown, near Albany in Western Australia. The Southdown magnetite project, once developed, is expected to have the capacity to supply double the amount of iron ore produced at Savage River.
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