Eventually News Group reported this...

Eventually News Group reported this news.

http://m.news.com.au/SA/pg/0/fi772947.htm;jsessionid=816322C5076B422B7999350039E66020

A Peculiar mine for Coober Pedy
July 8, 2011 11:58PM

CONSTRUCTION of a new iron mine near Coober Pedy will begin on Monday week, opening frontiers for the state's resources sector.

The WPG Resources mine at Peculiar Knob will be the first inside the Woomera Prohibited Area since the Federal Government agreed to better access inside the zone.

WPG also will join IMX Resources as the first of a group of smaller companies creating an iron ore export industry outside the long-established operations of OneSteel at Whyalla.

Executive chairman Bob Duffin said yesterday the final permits for the mine and an ore export facility at Port Pirie had been granted by the State Government.

"The approvals mean that WPG can now move to the project construction phase," he said. "WPG will spend some $170 million to bring the project into production.

"Contractors engaged by WPG will spend an estimated additional $250 million on mobile plant and equipment."

Peculiar Knob, 90km south-east of Coober Pedy, is named after the rock formation on a nearby hill and contains high grade ore suitable for shipping direct with minimal processing.

Premier Mike Rann said he was delighted.

"This will be our 17th operational mine," he said.

"And it's a signal of what's to come in terms of the Woomera Prohibited Area."

SA Chamber of Mines and Energy chief executive Jason Kuchel said WPG Resources had been resolute in advancing its project. "This demonstrates the hard work and ingenuity of junior mining companies," he said.

About 180 jobs will be created during construction.

Once the mine is in production, about 240 people will be needed on site with a further 60 to work at Port Pirie and Port Augusta.

WPG has begun recruiting management level staff with Mr Duffin saying he has been approached by SA residents now working in WA or Queensland who wanted to find jobs closer to home.

He expects production to begin early next year.

"The first train is scheduled to leave the Wirrida Siding in the first week of May next year and we'll be making sales at the end of May," he said. "So we will be generating cash flow in this current financial year."