State gives nod to Grange iron project

Grange Resources expects discussions with financiers to pick up after it today received final state approval for its Southdown magnetite iron joint venture near Albany.

The iron ore hopeful received the approval for the mine and associated pipeline infrastructure from Environment Minister Donna Faragher.

"We now have the Southdown iron ore mine in an approvals ready state, which will greatly enhance any future discussions with potential project financiers," managing director Russell Clark said.

"This is a significant milestone in the development of Southdown and an important step in the development of Grange's second iron ore export operation.

"Together with our joint venture partner Sojitz, we can now look forward to continued progress at Southdown on our own development timetable, without any major foreseeable approval delays."

Joint venture approval is now needed to start a definitive feasibility study, which is expected to take 18 months. The study will draw on operational knowledge from Grange's other mine, Savage River, in Tasmania.

Grange expects final federal approval for Southdown soon and also anticipates the state's Environmental Protection Authority to release its recommendation on the expansion of Albany Port.

The Albany Port Authority is seeking to install a separate berth capable of handling Cape Size vessels in order to export Southdown iron ore concentrate for pelletising.

Shares in Grange were up one cent to 28c at 11:30 AEDT.