Grange Resources approves $357M underground project

• Grange Resources reached a final investment decision to develop the North Pit Underground Project at its Savage River operations.
• The project features an estimated net present value of $357 million and an internal rate of return of 43%.
• The decision extends production continuity to 2035 using internal cash flow to fully fund development.

Grange Resources (ASX:GRR) approved a final investment decision to proceed with the North Pit Underground Project at its Savage River Iron Ore Pellet Operations in Tasmania.

The board chose a sub-level cave development model after optimization studies showed lower initial capital demands than a block cave alternative.

All environmental approvals for the underground development are currently in place.

Underground mining is scheduled to start in the first quarter of 2027, with base case economics evaluated at a US$90 per tonne iron ore benchmark.

The mine life extension secures iron ore pellet supply to at least 2035 with potential expansion past 2040.

Following the announcement, the Grange Resources share price was up at $0.12.

The company will fund the underground development entirely through existing cash reserves and cash flows from ongoing open pit operations.