Pilbara discovery sees Stokes add some iron to his empireBy...

Pilbara discovery sees Stokes add some iron to his empire

By BARRY FitzGERALD
RESOURCES EDITOR


KERRY Stokes has become a multibillionaire from his range of media and mining equipment supply business interests. Now he is on his way to adding ``iron ore magnate'' to his portfolio of personal titles.

His 52 per cent-owned, ASX-
listed Iron Ore Holdings has
confirmed its Iron Valley discovery
in Western Australia's central
Pilbara region as one of the best by
a junior company in recent times.

Maybe so, but Iron Valley is no
different from other discoveries
because the deposit will remain
just a discovery unless IOH can get
the ore to the coast by piggy-
backing off the jealously guarded
rail and port handling systems of
either Rio Tinto, BHP Billiton or
Fortescue.

Mr Stokes' influence in WA, and
his connection with Rio iron ore
boss Sam Walsh, are what has given
IOH the edge on other juniors in
the past, with Rio signing a ground-
breaking mine-gate sales deal last
July for another IOH project, the
smaller Phil's Creek.

Whether a similar deal _ Rio
will be looking after that project's
rail and port needs _ is struck on
Iron Valley remains to be seen.
Officially, IOH will be looking at all
development options for the find.

After board meetings at West
Australian Newspapers would be a
good time for a chat. Mr Stokes
became WAN chairman in Decem
ber after orchestrating a board spill
from his 22 per cent WAN
shareholding base. Mr Walsh
joined him as a non-executive
WAN director at the same time.

Latest exploration results at
Iron Valley have outlined a south
ern extension of the high-grade
deposit, which is of the much-
prized Brockman type. Brockman
ores sit at the top of the quality tree
of Pilbara iron ores.

IOH had previously outlined
88million tonnes of the ore, with
the latest exploration pointing to
an increase to more than 100 mil
lion tonnes, plus what might come
from additional exploration.

The size and style of deposit are
such that IOH can ponder having
Iron Valley in production from the
second half of 2012 at an annual
rate of 5 million to 10 million
tonnes, worth $380 million to
$770million at current prices.

That's not in the league of
Andrew Forrest's and Gina Rein
hart's Pilbara iron ore riches. But
when you already control the
Seven Network, WAN and one of
the world's biggest franchises for
Caterpillar mining and industrial
equipment, it doesn't really matter.

IOH shares closed 2.5, or
5.2per cent, higher at 50, valuing
the group at $58 million.