wpg to build facility at port pirie

http://www.proactiveinvestors.com.au/companies/news/17206/wpg-resources-to-build-facility-at-port-pirie-to-export-peculiar-knob-dso-iron-ore-17206.html

WPG Resources to build facility at Port Pirie to export Peculiar Knob DSO iron ore
Friday, June 17, 2011 by John Phillips

WPG Resources (ASX: WPG) has purchased a block of land in Port Pirie to build an iron ore receival, storage and loadout facility for the export of iron ore from the company?s Peculiar Knob direct shipping ore mine, located south of Coober Pedy in South Australia.

WPG Resources and Land Management Corporation, a unit of the South Australian Government, have exchanged contracts for the purchase.

A deposit for the purchase has been paid and settlement will occur when the Development Application is approved, and importantly was recommended for approval by the Development Assessment Commission in May.

The Commission?s recommendation is now being considered by the Minister.

To continue moving Peculiar Knob forward, WPG Resources expects that the Mining and Rehabilitation Program for the project will be approved during July 2011.


Peculiar Knob - current status

In regards to construction and production, WPG Resources expects site access to be available in July, with forecast production at 3.3 million tonnes annually to commence in late 2011, with sales in the June quarter 2012.

The investments costs break down is; capex $139 million plus W/C $29 million, cash opex $66/t to FOB plus $6/t royalties, with a mine operating surplus of around $250 million annually, based on current prices, for six years.