Hi Bagginsthey may need to buy more of Murchison sooner than...

Hi Baggins

they may need to buy more of Murchison sooner than they thought. They have issues with the EPA's findings. The article below is the latest from Mining News...hopefully it will be resolved for both their and Murchison's benefit...in the longer term if they can't go ahead with the Mungada portion of their project (possibly more) then this would impact on future Murchison/OPR infrastructure revenue.

Sinosteel warns EPA findings may threaten Mid West development

Wednesday, 3 June 2009

SINOSTEEL Midwest Corporation says the Environmental Protection Authority’s decision to not give full approval for its Blue Hills mining plan means the project may no longer be economically viable.

The Chinese-backed company yesterday announced it had appointed a new chief operating officer, Giulio Casello, who would be dealing with the aftermath of the Western Australian EPA’s decision.

The previous COO, Bryan Oliver, will be retiring from the company.

Sinosteel planned to mine two areas at Blue Hills – Mungada East and Mungada West – which combined would produce around 3.17 million tonnes per annum, along with another 2.6Mt from the Koolanooka area, in the first phase of its mining operations, producing a total of 5.8Mtpa.

Phase two would see the company produce up to 15Mtpa from the Weld Range project area.

The EPA said yesterday it did not support the development of Mungada East and that the whole Mungada Ridge area should be reserved as an A class nature reserve.

Casello said in a statement the company was disappointed with the EPA’s findings and warned that the decision could jeopardise Sinosteel’s plans in the region.

“The EPA decision to not recommend approval for a part of the project makes it impossible for Sinosteel Midwest to progress the project economically,” he said.

“This is not only going to impact the company – it will also mean a loss of local jobs and contracts, purchasing from local businesses, community sponsorships and training programs, as well as the beneficial environmental offsets offered as part of the project.”

Casello also encouraged stakeholders in the project to take their comments to the EPA during the formal review period. There is a two-week public appeal period on the report, closing June 16.

In the meantime, Sinosteel Midwest will be reviewing the EPA’s comments and conditions.

The project will need ministerial approval and the EPA’s findings are open to an appeals process.

Sinosteel won control of Perth-based iron ore junior Midwest Corporation in July last year after beating off rival suitor Murchison Metals with a $US1.36 billion ($A2 billion) deal.