STRONG resurgence in the Asian steel market has been the catalyst for expansion of Robe River Iron Associates’ Pilbara iron ore mining operations with the $1 billion development of West Angelas.
STRONG resurgence in the Asian steel market has been the catalyst for expansion of Robe River Iron Associates’ Pilbara iron ore mining operations with the $1 billion development of West Angelas.
Officially launching the project, Robe executives paid tribute to its major customers, Japanese steel manufacturers.
North Limited executive director bulk commodities Richard ‘Dick’ Knight said: “We would not be here today but for the support of Japanese steel mills, in particular Nippon Steel and Sumitomo Metal Industries, aided to a significant extent by Mitsui.
“Without the leadership shown by our Japanese participants, West Angelas would not enjoy the broad consumer support that the Robe marketing department has been able to secure these past years.”
Mr Knight confirmed the project was underpinned by commitments, not only in Japan, but also from Korea, China and several major European steel mills.
Resource Development Minister Colin Barnett – who described West Angelas as a “breathtaking” project – predicted that it marked the beginning of major expansion in iron ore production in WA.
“I am confident that, given developments within the steel
market globally and particularly the rejuvenation of steel production now taking place in the North East and South East Asian regions, we will see iron ore production in this State continue to grow by at least another 50 million tonnes,” he said.
“This project will also be an essential step in a progressive expansion of production capacity for the WA iron ore industry.”
Robe executive director Bryan Oliver described the project as a significant milestone.
He said the support of Japanese steel mills had been “significantly critical” in deciding to go ahead with the West Angelas project.
“Their ongoing support will be critical for the future success of the project,” he added.
Robe’s iron resources are currently estimated at between three billion and four billion tonnes, with its major deposits being found in mesas stretching for 100 kilometres along the ancient Robe River Valley.
Its resources in ten ore bodies in the West Angelas and Angelo River area so far total over one billion tonnes.
Production from West Angelas will increase to about 50 million tonnes per annum.
It marks a major turnaround since 1981 when a combination of factors – the international oil crisis, steel industry downturn and comparatively lower quality of ore – shelved the project.
The project was rejuvenated in January when seven Japanese steel mills provided Robe with letters of intent to purchase Marra Mamba ore mined from West Angelas.
A week later North launched its development plan and then initiated the eight-year blueprint to increase exports.
The plan includes development of West Angelas iron ore deposits, construction of a 340 kilometre railway from the mine site to link with the existing Robe line from Mesa J, new mine site facilities and a staged upgrade of Robe’s processing and port facilities at Cape Lambert.
The West Angelas mine site is located about 100km west of Newman and 300km south east of Cape Lambert.
