Shipping will return to Port Augusta for the first time in five decades as ground is broken on a $100m project

The former power station site at Port Augusta is set to be transformed into a new $100m port, with early site works starting this month.

Work has started on a new $100m port at Port Augusta, on the site of the former Northern Power Station.

Port Augusta Operations (PAO), which is building the new facility, said it would be named Port Playford “in recognition of former Premier Sir Thomas Playford and his role in the establishment of the Leigh Creek coalfield and Port Augusta power station’’.

The power stations at Port Augusta were shut down in 2016 and decommissioned over the following years, with mining company Cu-River buying the site from Flinders Power in 2019.

PAO, which is an Australian-owned company associated with Cu-River, received development approval for the project in December last year and said on Thursday site administration offices were now being built.

A locally-based construction manager had been appointed as well as a stakeholder engagement manager to lead the construction and commissioning of the site, which would be used to export iron ore and potentially other commodities.

The Playford B Chimney at Port Augusta being demolished.

“PAO plans to invest more than $100 million at the site over the next 18 months, unlocking $160 million worth of existing assets currently under-utilised at the disused site which is approximately the size of the Adelaide CBD,’’ the company said.

“The site has potential to accommodate a range of commodities and activities, including mineral processing.

“PAO plans to load commodities onto shallow-draft self-unloading vessels at the facility’s wharf, via existing rail links, to cape-sized, ocean-going bulk carriers, moored at existing offshore trans-shipment points to the southeast of Whyalla.’’

The company said it was aiming for first shipments from the port in the second half of 2023.

This would represent the return of commercial shipping to Port Augusta for the first time in more than five decades.

Operations director John Fullerton said the company was aiming to get export rates up to an initial five million tonnes of iron ore per year, before a further expansion to 15 million tonnes.

Concept plans for the proposed Port Playford development, which has started early site works. Image supplied by Port Augusta Operations

The first ore was likely to come from the Cairn Hill mine and Peak Iron’s Peculiar Knob mine, the latter of which is currently exporting through Whyalla.

But having a new bulk commodities port in South Australia provided a new route to market for the vast iron ore reserves in areas such as the Braemar iron ore province in the northeast of the state, Mr Fullerton said.

“As this project advances we are confident that other opportunities will emerge to fully utilise the site which will become a significant and strategic asset to the Port Augusta region,’’ he said.

PAO said since it had received development approval it had progressed detailed design work to upgrade pre-existing rail infrastructure, construct a new conveyor transfer system, build storage sheds and develop the trans-shipment system to export product overseas.

The project involves loading barges with iron ore, which is then transshipped to larger vessels in deeper water – a process already used at the Whyalla port.

Cu-River owns the Cairn Hill iron ore project 55km southeast of Coober Pedy, which is currently on care and maintenance.

State Government documents indicate the company believe the current mine life of the iron ore and gold operation would be 4.5 years from the date of recommencement of mining.

Originally published as Shipping will return to Port Augusta for the first time in five decades as ground is broken on a $100m project