Iron Road Limited: Leading the Way in Sustainable Water Infrastructure

About Iron Road Limited

Iron Road Limited is an Australian mineral exploration and infrastructure development company focused on unlocking the potential of South Australia’s flagship iron ore deposit through the Central Eyre Iron Project (CEIP). The company, listed on the ASX under IRD, is developing a new globally significant iron export business based on its confirmed iron resource near the regional centre of Wudinna on western Eyre Peninsula.

Beyond mining, Iron Road is also positioned to play a lead role in the development of critical new infrastructure for South Australia through the innovative Cape Hardy port facility and participation in the landmark Northern Water Project. With a long-term vision underpinned by sustainability, innovation and partnerships, Iron Road is striving to create intergenerational opportunities for regional communities and all South Australians.

Cape Hardy Site Ranked Top Location for Northern Water Project

On September 20th, Iron Road Limited announced that the Cape Hardy site has been ranked as the top location for the proposed Northern Water (NW) desalination plant, according to an independent report by Jacobs Group and GHD.

The NW project aims to provide a sustainable water supply to end-users in South Australia that currently source water from the Great Artesian Basin and River Murray. The 260ML/day desalination plant would service the mineral production, defense, agriculture, and green energy industries while also offering the potential to supply SA Water customers.

As part of the project's final business case, Jacobs and GHD conducted a thorough Multi-Criteria Assessment (MCA) evaluating Cape Hardy against three other possible locations - Point Lowly, Crag Point, and Mullaquana Station. The MCA incorporated four categories:

• Sustainability
• Social Sustainability and Liveability
• Financial Efficiency/Prudency
• Technical Robustness

Across the 17 specific criteria, Cape Hardy consistently ranked as the top location based on combined scores. According to the memorandum summarizing the MCA outcomes, Cape Hardy offers the greatest benefits and least negative impacts for the NW desalination plant.

The MCA provides a compelling, data-driven case for selecting Cape Hardy as the preferred site. Iron Road is well-positioned to play a leading role in the project given its ownership of the Cape Hardy land and efforts to develop a new port facility. The NW project also strongly aligns with Iron Road's commitment to sustainability, innovation and creating opportunities for regional South Australia.

While a final decision has not yet been made by the South Australian government, the MCA findings indicate Cape Hardy offers the optimal location for the landmark NW desalination plant. As the project progresses, Iron Road will be poised to leverage its assets and expertise in sustainable infrastructure development.

Cape Hardy's Strengths for the NW Project

The MCA highlights numerous advantages that make Cape Hardy the top-ranked site for the NW desalination plant, including:

• Minimal Environmental Impacts: Cape Hardy reduces marine environmental impacts due to substantial mixing and limited sensitive habitats. The site avoids seagrass risks and has a lower impact on coastal processes.
• Favorable Seawater Quality: Cape Hardy provides the best seawater quality characteristics, ensuring the desalination process will be more efficient and effective.
• Scalability for Expansion: The Cape Hardy site allows scalable expansion up to 520ML/day capacity to meet future increased demand. Other sites have more limited scalability.
• Land Availability and Suitability: Iron Road owns the Cape Hardy land, resolving land acquisition risks. The site offers suitable topography for the plant and conveyance infrastructure.
• Proximity to Demand: Cape Hardy provides the shortest pipeline distance to the main demand at the OZ Minerals mine, reducing capital costs.
• Port Synergies: Co-locating with Iron Road's proposed Cape Hardy port facility creates operations and maintenance synergies.
• Serviceability: Cape Hardy has adjacency to key existing electricity transmission infrastructure.
• Lower Social Impacts: Cape Hardy has a more remote location, minimizing visual, noise and traffic impacts compared to other sites located closer to population centers.

By scoring strongly across the MCA criteria, Cape Hardy demonstrates compelling advantages as the preferred location for the NW desalination plant. The independent report provides a robust fact base for decision-makers to select Cape Hardy as the optimal site.

Iron Road Poised to Play Key Role in NW Project

As the owners of the Cape Hardy land, Iron Road is primed to participate in the NW project if the site is officially designated as the preferred location. The company could benefit through:

• Long-term land lease revenue from the desalination plant site
• Synergies and shared infrastructure with the proposed Cape Hardy port facility
• Supply agreements to provide desalinated water to support the CEIP mine operations
• Enhanced regional infrastructure supporting further development of South Australia's mineral resources

The NW project aligns strongly with Iron Road's focus on developing sustainable infrastructure to unlock national resources, drive regional growth, and deliver lasting benefits. Cape Hardy is an ideal location given minimal environmental impacts, proximity to renewable power and industrial demand, and enabling further expansion over time.

Iron Road brings critical capabilities that can support successful implementation of the NW desalination plant, including:

• Technical expertise in major infrastructure projects from the CEIP initiative
• Strong relationships with key stakeholders across industry, government and community
• Commitment to sustainable development and innovation
• Ownership of Cape Hardy land and baseline environmental data
• Long-term interest in ongoing operations through the integrated port facility

The company is well-positioned to play a pivotal role in the NW project, which would create substantial value for Iron Road and its shareholders. As the independent MCA has verified, Cape Hardy is the superior location from economic, environmental and social perspectives.

Conclusion

The clear, data-driven findings from the MCA process validate Cape Hardy as the optimal location for the landmark Northern Water desalination project in South Australia. This creates a significant opportunity for Iron Road given its ownership of the site.

Iron Road would benefit through long-term lease revenue, synergies with its proposed Cape Hardy port, an enhanced local water supply for the CEIP mine, and participation in nation-building sustainable infrastructure. By leveraging its expertise and assets, Iron Road can create value for shareholders and make a major contribution to South Australia’s development.

With Cape Hardy’s strengths verified and the final investment decision still pending, Iron Road is strongly positioned in the NW project as both a participant and potential leader. Investors should view this as a material upside opportunity for Iron Road to grow its sustainable infrastructure exposure, building on its core iron ore export business.