The pressure from aspiring iron ore producers to improve the Mid-West region’s infrastructure continued this week, along with new moves to alleviate that pressure.
The pressure from aspiring iron ore producers to improve the Mid-West region’s infrastructure continued this week, along with new moves to alleviate that pressure.
Gindalbie Metals Ltd concluded a $33 million capital raising deal for its Karara project, Murchison Metals Ltd put back its Jack Hills project two months while concluding more sales, and the new Geraldton Iron Ore Alliance commissioned a strategic transport study on the region’s southern corridor.
Gindalbie’s 90 million 37-cent share issue, together with existing cash reserves, will increase its cash position to $40 million and underpin the two stage development of its Karara project, 220 kilometres east of Geraldton.
First production of high-grade direct shipping (DSO) hematite iron ore is scheduled for the second half of 2007, beginning at 1.5 million tonnes a year and rising to 4mt/year by 2009.
The second stage is based on the establishment of a one billion tonne magnetite iron ore resource capable of supporting a 7mt/year high-grade concentrate/pellet project, with an initial resource expected later this month.
Gindalbie managing director David McSweeney told WA Business News the plant was scheduled to go into production in 2010, probably in Geraldton and fed by a slurry pipeline from the mine site.
Production from the first stage of Murchison’s $24 million Jack Hills iron ore project has been delayed two months until August.
The company said environmental approvals for clearing vegetation at the Jack Hills mine site, 380km north-east of Geraldton, would not be completed until early July, pushing first ore shipments out to August.
The project involves the initial production of 1.2mt/year to be trucked to Geraldton Port, increasing to 1.8mt/year in 2008.
However, Murchison has concluded further sales contracts that now cover all stage-one’s five-year production and worth about $95 million in the first year.
The second stage of the Jack Hills development is targeting 25mt/year from mid 2010.
The five member Geraldton Iron Ore Alliance has commissioned a study into developing a strategic transport plan for the Mid-West region’s southern corridor, an area roughly south of a line drawn east from Geraldton, designed to accommodate the rapid growth of the iron ore industry over the next five years. WestNet Rail and the Department for Planning and Infrastructure are also involved.
