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Iron ore project turns first sod

Construction is officially underway on the largest resources project in the Mid West region of Western Australia, the Karara iron ore project.

An official ground-breaking ceremony was attended by WA Premier Colin Barnett and other dignitaries.

Karara, 500km north-east of Perth, is a 50/50 joint venture between Australian iron ore company Gindalbie Metals and Chinese steel and iron ore company, Ansteel.

The symbolic first sod was turned on the site of the Karara magnetite concentrator – a massive structure that will rise out of the ground over the next 18 months.

The official launch of the Karara Project represents a pivotal event for Gindalbie, which was one of the pioneers of iron ore exploration in the Mid West region. Karara is the first major mine development in the Mid West and also one of only a handful of new magnetite projects to be developed in Australia. These magnetite projects herald a new era of downstream processing for the industry in the emerging Mid West iron ore province.

Initial site clearing activities and preliminary earthworks commenced at Karara in early November following the receipt of final Commonwealth environmental approval on 30 October and State Government environmental approval on 9 September.

Karara will initially produce 10 million tonnes per annum of iron products in 2011, comprising 8mtpa of high-grade magnetite concentrate and 2mtpa of direct shipping ore.

Karara has the potential to produce more than 30mtpa over a mine life estimated at more than 30 years.

Gindalbie managing director Garret Dixon said construction marked the beginning of a new period of growth and development for the Mid West region and a strong vindication of the partnership established with Ansteel.

“In commemorating this historic milestone, I would like to acknowledge the vital support that has been provided to us over many years by Ansteel, which has brought key elements to the project development including a long-term off-take agreement, equity and project funding,” Mr Dixon said.

Karara is one of the first projects in Australia to involve an integrated development with an offshore downstream processing facility in the form of a joint venture pellet plant which will be constructed near the site of Ansteel’s new steel-making facility at BaYuQuan in China.

http://myresources.com.au/index.php/component/content/article/50-latest-news-4/785-karara-iron-breaks-new-ground