Post 1 of 2I am posting the expanded and most recent report from...

Post 1 of 2

I am posting the expanded and most recent report from WA Business News regarding the Environmental Review. You will note that the report states quite clearly that the GBG Karara/Mungada magnetite projects are viewed favourably.

It is also worth noting why the Review was undertaken.

From the actual Review:

http://www.doir.wa.gov.au/documents/aboutus/BIF_DoIR_Report.pdf

“Some “starter” or short lived stage 1 developments are proceeding, in many cases to provide the cash flow to fund a full scale, stage 2 development. It is the stage 2 projects which could bring the longer term benefits over a 20-30 year period. In addition to Mt Gibson, the other four major projects thus far identified in the Midwest region (Mt Karara Magnetite, Jack Hills Stage 2, Weld Range and Koolanooka Magnetite) as well as the Mungada Hematite are expected to be formally progressed through the environmental approvals process over the next 12 to 18 months. Triggering of the assessments of the major infrastructure development of the railway and Oakajee port should also be forthcoming in this period. Major overseas companies are actively participating in and largely underwriting each of the significant developments and they are expressing frustration with time delays in accessing land, the slow speed of project development and the overall lack of certainty now emerging. A project-by-project assessment does not allow effective policies or strategies to be pursued. Given that major international owned enterprises are involved in the region’s iron ore projects, an adverse “unanticipated” outcome for the more significant projects could impact on WA’s
– international business relationships.

A number of major international companies could review their future investment in WA if the “rules of engagement” are not clarified upfront. A clear statement of Government’s policy position in respect to access to the BIF ranges for development is required to give confidence, on the one hand, that the significant sums being expended in exploration and feasibility studies are worthwhile and the major financing arrangements currently being put in place.

Decisions on the most advanced projects at Mt Karara/Mungada need to be made in the overall context of policies for all of the BIF ranges as they will create precedents and impact on the level of confidence for companies in being able to develop a significant sustainable iron ore industry in the Midwest. It needs to be noted, based on information that is currently available, that there are differences between the various BIF ranges in terms of their biodiversity conservation and mineral prospectivity/resource values.”

Also be aware that the govt has set up various regional bodies to deal with and promote the expansion of the Mid West eg The Mid West Chamber of Commerce and The Mid West Regional Development Commission. Here is what the Dev Comm had to say regarding infrastructure plans:

http://www.mwdc.wa.gov.au/uploaddocs/October%20Print.pdf

The WA Business Report will follow in the next post.