http://www.proactiveinvestors.com.au/companies/news/16678/wpg-resources-updates-peculiar-knob-dso-status-for-permitting-contracts-and-banking-16678.html
WPG Resources updates Peculiar Knob DSO status for permitting, contracts and banking
Monday, May 30, 2011 by John Phillips
WPG Resources (ASX: WPG) has updated the market for the company's flagship Peculiar Knob direct shipping ore iron ore project, located south of Coober Pedy in South Australia.
WPG Resources has submitted an offset proposal to the Commonwealth pursuant to the Environmental Protection and Biodiversity Conservation Act that provides significant environmental benefits to threatened native species and in particular the thick billed grasswren.
The company said indications are that this proposal will be acceptable to both the Commonwealth and the State, with formal advice expected shortly.
WPG Resources is continuing to meet with Primary Industries and Resources of South Australia, the mining regulator, to discuss conditions of approval of the Mining and Rehabilitation Plan (MARP) that was lodged on 16 November 2010, with the company expecting that the MARP will be approved in July 2011.
Earlier in the month, WPG Resources advised that the Development Assessment Commission has recommended the approval of the proposed Port Pirie receival, storage and outloading facility, and this recommendation will soon be considered by the Minister for Urban Planning, Development and the City of Adelaide.
Peculiar Knob - current status
Peculiar Knob has funding in place with $85 million raised at the end of 2010, and a Deutsche Bank US$120 million facility financing documents to be signed in the short term.
In regards to construction and production, WPG Resources expects site access to be available in July, with forecast production at 3.3 million tonnes annually to commence in late 2011, with sales in the June quarter 2012.
The investments costs break down is; Capex $139 million plus W/C $29 million, cash opex $66/t to FOB plus $6/t royalties, with a mine operating surplus of around $250 million annually, based on current prices, for six years.
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