Despite most affected mining companies welcoming the State Government’s decision to approve a second minerals berth at the Geraldton port – the first part of bigger plan to yet again reconfigure the port – for some a cloud still hangs over the facility’s operational performance.
Last week’s decision paves the way for a second mineral ship loader, worth $2.2 million, to be purchased for Geraldton, which will separate booming iron ore exports from other, more sensitive minerals exports.
The changes will also increase lay-down space at the port.
Planning and Infrastructure Minister Alannah MacTiernan released a statement saying the Geraldton Port Authority (GPA) had adopted a plan to increase capacity.
The plan, flagged in WA Business News in early May, could cost taxpayers up to $10 million and comes only months after a much larger upgrade, worth $103 million, was completed at the port.
Ms MacTiernan said the initial expansion had been even more successful than expected and this increased demand justified the additional investment in the port’s loading facilities.
However, WA Business News understands the ageing port infrastructure has been under increasing pressure since the region’s new iron ore industry began progressing.
MidWest Corporation, which has been waiting for lay-down space at the port to commence production at its Koolanooka tenement, was pleased with the decision
MidWest CEO Stephen de Belle said the decision would allow MidWest to complete shipping arrangements for planned exports of up to 1.5 million tonnes of iron ore a year. He said it seemed the port would now have sufficient capacity to handle the company’s proposed iron ore pellet project, but was still considering a deepwater export option at Oakajee to facilitate the development of the company’s much larger Weld Range tenements.
However, Mount Gibson Iron, which started shipping iron ore out of Geraldton from its Tallering Peak mine in February this year, remains concerned.
While welcoming the announcement, a Mount Gibson spokes-woman said managing director Brian Johnson was disappointed with the performance of the port since the company commenced shipping from Geraldton.
“While some macro issues have been solved there are still ongoing operational issues that needed to be addressed,” she said.
Roc Oil, which is contemplating shipping oil out of Geraldton from there nearby Cliff Head field, also welcomed the decision.
But Roc CEO John Doran said a better idea of export options would known later in the year.
A spokesperson for local talc miner Luzenac Australia could not be contacted.
