interesting news

Wonder what this means for ACS (if anything)?

Ralph

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Mt Gibson to restart Extension Hill
12 January 2010
http://www.wabusinessnews.com.au/en-story/1/77745/Mt-Gibson-to-restart-Extension-Hill?utm_source=DBA&utm_medium=email&utm_campaign=article_click

Mount Gibson Iron will restart construction of its Extension Hill iron ore project in the Mid West, with costs expected to reach $80 million, after executing life of mine ore sales agreements.

The development of the mine is expected to take 15 months, the company said in a statement today.

Mount Gibson said it had has executed ore sales agreements with each of Shougang Concord International Enterprises Company and APAC Resources for all the ore production from Extension Hill.

Mount Gibson also has in place track access and rail haulage agreements to cater for at least 3 million tonnes per annum of production. All the rail wagons required to meet Extension Hill's production targets have been delivered and a $90 million upgrade of the existing line between Geraldton and Perenjori by Westnet Rail Pty Ltd will be completed by June 2011, with ore shipments to commence thereafter.

As previously advised, Mount Gibson submitted to the Western Australian State Government a proposal to upgrade, own and operate the rail unloading facility at the Geraldton Port. The State Government welcomed Mount Gibson's proposal however has elected to retain ownership of multiuser port facilities and has informed Mount Gibson that the Geraldton Port Authority is in the process of submitting a proposal to State Government to upgrade the existing rail unloading facility. Consistent with the State Government's commitment to upgrade, own and operate the rail unloading facility at the Geraldton Port, Mount Gibson has committed to the recommencement of activities at Extension Hill.

Mount Gibson's Managing Director Luke Tonkin said "the recommencement of the Extension Hill Project is a substantial investment in the Mid West region which enhances infrastructure, creates employment and creates opportunities for local communities. The recommencement of Extension Hill also signals the strength of Mount Gibson's balance sheet resulting from necessary capital raisings early in 2009, the very strong performance of our operations and a cautious optimism regarding iron ore demand."