Aspiring iron ore producer Aurox Resources says it has secured environmental approval from the State Government for its Balla Balla project in the West Pilbara.
The company plans to produce 6 million tonnes of ore a year from Balla Balla from 2012, increasing to 10 million tonnes a year within five years.
Aurox managing director Charles Schaus said the Balla Balla project 110km south west of Port Hedland would be developed as soon as the next stage of financing was secured.
“Importantly, the environmental green light is the crucial approval financiers now look for when considering the commitment of funds to projects like Balla Balla, as they can be assured their investment can be put to work immediately,” he said.
The company said engineering of plant and port infrastructure was well advanced including a 15-year port access agreement with the Port Hedland Port Authority for the Utah Point multi-user facility.
Representatives from Aurox travelled to Beijing yesterday for discussions with potential investment groups and off-take partners.
Aurox shares closed up 1.5 cents, or 7.14 per cent, at 22.5 after hitting an intraday peak of 26 cents.
STUART McKINNON
AXO Price at posting:
22.5¢ Sentiment: LT Buy Disclosure: Held
