17 million which it will use for the early costs of developing SASE and its Ballymoney lignite project in Northern Ireland.
SASE has access to at least 800 Mt of high-grade iron ore and up to 16,000 Mt of Meekatharra's Permian, low-ash steaming coal.
SASE should be one of the world's lowest cash cost pig iron producers, at less than $70/t fob (assuming 40% heat recovery).
Within 20 km to the north of the proposed site is Meekatharra's Phillipson coalfield with measured reserves of 62 Mt, another 33 Mt indicated and an inferred resource of 5,000 Mt; some 40 km to the east-southeast are the SASE Hawk's Nest iron ore deposits (800 Mt).
The assets transferred to SASE by the State Government include exploration licences covering iron ore prospects that have been extensively explored and are estimated to contain more than 800 Mt of mainly magnetite ores of inferred and indicated status, with the potential probably to contain over 2,000 Mt as further exploration by SASE continues.
Thus MML's South Australian coal has three potential markets, as a feed for SASE, local power generation markets and exports.
Final design and operating parameters for the SASE commercial plant will be established by plant campaigns of about six months duration at the Whyalla facility.
At SASE this feed will be run-of-mine (ROM) iron ore, coal and limestone flux.