what the?

Does this reporter know what he is talking about? Pilbara?


Gindalbie Metals / Unknown ©
Gindalbie Metals insisted last night that construction of its $1.8 billion Karara magnetite mine in the Pilbara would not be delayed despite failing to secure debt financing and an offtake deal with its Chinese partner.

Instead, Gindalbie said it had agreed with Anshan Iron & Steel Group (Ansteel) to extend the deadline for financing and offtake to be completed by five months to April 9.

A Gindalbie spokesman said last night that construction of Karara would not be affected by the deadline extension because the joint-venture partners were not expected to draw down on the debt facility until the June quarter.

Until then Gindalbie and Ansteel had earmarked cash within the joint venture to fund early-stage works.

Gindalbie shares closed down 2¢ at 92.5¢ before the deadline extension was announced.

The timetable targets first hematite production in early 2011 followed by magnetite output from August that year. Karara's initial target is to be producing two million tonnes of hematite a year and 8mtpa of magnetite.

PETER KLINGER