Balmoral South Iron Ore Project Update

This week, Australasian Resources released its Environmental Protection Authority’s Report and Recommendations (EPA Report) on the Project’s Public Environmental Review.

The release of the report – the outcome of extensive environmental surveys and investigations - is a major milestone for the project and marks a significant step towards developing the project into a world-class iron ore venture.

Following extensive public and government review, the Report recommends EPA approval, citing evidence that anticipated environmental conditions can be met.

Details of the project:
• An open-cut mine producing 80Mtpa of magnetite ore;
• Processing facilities including crusher, concentrator and pellet plant for production;
• 30km conveyor linking the process plant to the port facilities;
• Desalination plant and 600MW combined-cycle gas fired power station;
• Overburden and waste disposal facilities, and
• Accommodation villages for 4,000 construction and 1,500 operations personnel.

Under existing agreements, the Company has access to the port facilities currently under construction by CiticPacific Mining. They will now focus on obtaining the required licences and permits to trigger project and export facility construction, and expects to have these in place in 2010 to meet construction timelines.

Of interest, Professor Clive Palmer is a major shareholder (66%). Mr Palmer also owns Queensland’s Waratah Coal – a major project anticipated to generate some 7,000 jobs over the same timeframe.

Employment opportunities won’t start for a while yet, but we will monitor as EPA approval is granted and work package tenders are released.