Mr Jones downplayed uncertainty surrounding environmental...

Mr Jones downplayed uncertainty surrounding environmental approvals, which is Gindalbie's key risk.

He said a recent environmental review by the WA government of the banded iron formation ranges of the mid west and Goldfields regions had focused on Gindalbie's projects.

However, the government has said its 1.43 billion tonne Karara magnetite project would be approved.

Gindalbie's projects will be subject to a public environmental review mid next year.

The 2.17 million tonne Mungada hematite project is expected to go into production in the first quarter of 2009, providing the company with first cashflow.

Production from Karara is expected to follow in the first quarter of 2010.

Gindalbie expects to have its ore ready for use at a major steel mill being constructed by its joint venture partner, China's Ansteel.