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Australasian's Balmoral project upgraded
Email Print Normal font Large font March 27, 2008 - 12:52PM


Iron ore explorer Australasian Resources Ltd plans to double initial production from its Balmoral South project in Western Australia's Pilbara region to 24 million tonnes per annum (Mtpa).

Shares in the company surged on the news, up nine cents or 5.96 per cent to $1.60 at 1238 AEDT after hitting $1.65 in morning trade.

A feasibility study of the project, slated to commence production in 2010/11, is underway.

Private firm Mineralogy Pty Ltd owns the broader Balmoral deposit and has previously granted Australasian the right to mine one billion tonnes of iron ore from the Balmoral South project.

In a statement Thursday, Australasian said it was in the final stages of negotiation with Mineralogy - which is owned by one of Australia's wealthiest businessmen and philanthropists, Clive Palmer - regarding the acquisition of the additional tonnage.

Mr Palmer holds a stake of about 60 per cent in Australasian, which has an alliance with China's Shougang Corporation.

Australasian said it will lodge environmental documentation seeking approval for a 24 Mtpa operation, which it expects to secure by October.

© 2008 AAP