Saw this article tonight...good, bad or neutral for MMX?
EPA approves part of Midwest’s mining plan
Kate Haycock Tuesday, 2 June 2009
CHINESE-backed Sinosteel Midwest Corporation has won environmental approvals for mining at the Koolanooka Hills project, but only half the proposed Blue Hills project, with an area at Mungada East decreed unsuitable for mining by the Western Australian environmental approval agency.
A lump ore specimen from Midwest's Blue Hills iron ore project
The EPA this morning released its recommendations to the minister for environment over Sinosteel’s plans to mine haematite ore at Koolanooka and Blue Hills.
While the regulatory body gave the Koolanooka development its tick of approval, mining at Blue Hills could be constrained due to the environmental values of the Mungada East area.
Sinosteel was proposing to mine two areas at Blue Hills – Mungada East and Mungada West – which combined would produce around 3.17 million tonnes per annum as part of the planned stage two expansion of the project.
The Chinese company also plans to reinstate the Mungada Haul Road and build a camp at the Old Karara Homestead.
EPA chairman Paul Vogel said the agency’s advice did not support developing Mungada Ridge, as it considered the whole of the area should be reserved as an A class nature reserve.
“The Mungada East mine cannot be managed to meet the EPA’s objectives in relation to the conservation of biodiversity and ecological integrity and the EPA has recommended that it not proceed,” Vogel said in a statement.
“The Blue Hills area, and other banded iron stone formations, have very significant regional conservation values and contain a variety of rare and endemic species and communities.”
Vogel also said the decision was consistent with the EPA’s findings over Gindalbie Metals’ plans to mine in the same area.
In that case, the EPA recommended a conservation area be established around Mungada Ridge, and in April Gindalbie said it had decided not to further assess the haematite orebodies in the area.
Sinosteel will be commenting on the report this afternoon, a company spokesperson said.
Sinosteel won control of Perth-based iron ore junior Midwest Corporation in July last year after beating off rival suitor Murchison Metals with a $US1.36 billion ($A2 billion) deal.
There is a two-week public appeal period on the report, closing June 16.
MMX Price at posting:
$1.69 Sentiment: Hold Disclosure: Held
