http://www.abc.net.au/news/newsitems/200609/s1741633.htm Last Update: Friday, September 15, 2006. 10:27am (AEST) Gindalbie Metals plant move not bad news, says alliance The Geraldton Iron Ore Alliance says the announcement by Gindalbie Metals that it is building a pellet plant in China will not affect other mining companies in the mid west.
The Alliance says although the plant will be built offshore, the Karara Project mine will create hundreds of jobs in the mid west during its estimated 40-year life.
Gindalbie has announced a $180 million construction deal with AnSteel to build a pellet processing plant in China, after earlier indicating the plant would be built at Oakajee.
Acting chairman of the Alliance, Neil Roberts, says the move has actually increased confidence in the region.
"I don't think it'll have an impact on other miners, I think what it does do though is give greater certainty to the mid west region that the iron ore industry is likely to develop," he said.
Mr Roberts says this is not the first time high costs have forced companies to move projects offshore.
"The sorts of economic pressures that have led Gindalbie to this particular decision are at work throughout the state - it's not just the mid west," he said.
"Differentials between Australia and China are quite real and play a very important part in determining what is the most economically sensible way for these projects to get up."
GBG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
