future of midwest mining uncertain amec, page-6

Future of Mid-West mining uncertain: AMEC
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Friday, 3 August 2007
Colin Jacoby

MOUNT Gibson Iron has received approval to mine and process iron ore in Western Australia's Mid-West, however the decision has cast doubt on future mining in the region, the Association of Mining and Exploration Companies (AMEC) said.

In an appeal decison report on Mount Gibson mine and infrastructure project released late Wednesday, Environment Minister David Templeman advised that the Mount Gibson project could proceed.

The decision was made in response to thirty-two separate appeals to the Environmental Protection Agency's recommendations on the project that were released in November 2006.

However, the Minister dismissed an appeal against the EPA recommendation to preserve other areas of the Mount Gibson Range for significant floral species.

He said most of the remainder of the Mount Gibson Range had conservation value and was worthy of long-term protection.

AMEC has expressed concern over the decision's ramifications for further iron ore mining in the Mid West region.

"Whilst the decision is positive in that the Mt Gibson project can proceed without the EPA's original – and unrealistic – tradeoffs, there are a number of areas that raise real concerns amongst the mining industry," AMEC's Policy and Public Affairs manager Ian Loftus said.

"The greatest concern we have is that the Report does nothing at all to address the long term sustainability of the Mid-West's iron ore potential.

"It lets the Mount Gibson proposal through but leaves every other project in the Mid-West up in the air, making this state look like a very risky place for investors."

The Geraldton Iron Ore Alliance has also expressed concern that the ruling could threaten future iron ore projects in the region.

In its November report, the EPA recommended that Mount Gibson should only proceed if areas outside the initial mine site were deemed an 'A' class reserve, to protect the native flora from future mining in the region.

In an announcement today welcoming the Minister's decision, Mount Gibson said an important aspect of the approval was that it was not conditional on the EPA's recommendations made in its report.

Mount Gibson expects official approval to proceed with the project within seven weeks.

The company will seek board approval to begin Direct Ship Ore operations, and expects production will begin in late 2008.

The stock has gained 13.5c to be at $1.45 after coming out of its trading halt this morning.

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