mount gibson hopeful about wa port

Mount Gibson hopeful about WA port
Wednesday Nov 21 19:27 AEDT
Constraints at Geraldton Port in Western Australia, which have impacted Mount Gibson Iron Ltd's export volumes, are expected to ease from January next year when a new shiploader begins operations.

The iron ore producer is the port's largest customer and will account for 60 per cent of the new shiploader's 10 million tonnes per annum capacity.

Mount Gibson managing director Luke Tonkin told shareholders at the annual general meeting on Wednesday that the company had found the port to be inefficient and costly.

Mr Tonkin said the port constraints had forced the company to stockpile one million tonnes of iron ore from its three million tonnes per annum Tallering Peak operation, situated east of Geraldton.

"In the second half of this (fiscal) year, we become unconstrained by Geraldton Port when the new shiploader is up and running," he said.

The company plans to access to the main pit at its Koolan Island operations in about 18 months time and is currently mining from satellite pits.

The main pit at Koolan Island is considered by Mr Tonkin to be Mount Gibson's "main prize".

The project was attained through the acquisition of Aztec Resources Ltd in February and was mined between 1965 and 1993 by the then-BHP Ltd.

Mount Gibson recommenced iron ore production early this year and the first shipment followed in June.

The Perth-headquartered company expects to mine the main pit at Koolan Island in 18 to 24 months time and hopes to reach its targeted ore production rate of four million tonnes per annum in the fourth quarter of 2009.

"The Koolan main pit will dominate earnings in three to four year's time," Mr Tonkin said.

There are possible extensions underneath the main ore body, he said.

Mount Gibson has further merger and acquisition opportunities, he added.

All resolutions were passed at the meeting.