Construction starts for WPG Resources in South Australia

WPG Resources Ltd were pleased to announce that the South Australian government has approved the Mining and Rehabilitation Program (MARP) for the Company’s flagship DSO iron ore mine south east of Coober Pedy, and has also approved the Company’s Development Application (DA) for the iron ore receival, storage and export facility to be built at Port Pirie.

The approvals mean that WPG can now move to the project construction phase.  Site works at the mine and port will commence on Monday 18 July 2011.

WPG will spend some $170 million to bring the project into production. Contractors engaged by WPG will spend an estimated additional $250 million on mobile plant and equipment. Some 180 jobs will be created during the 10 month construction phase. During the production phase, over 240 jobs will be created at the mine site area, with an additional 60 jobs at Port Augusta and Port Pirie.

The construction contracts awarded are:

• Design and construction of the Port Pirie receival, storage and load-out facility - Kerman Contracting
• Construction of the 240-person accommodation village to be built mid way between the mine and the Wirrida siding rail loader – Ausco Modular
• Site civil construction including building of the haul road – Lucas Earthmoving.

The service provider contracts awarded are:

• Mining services contract – MACA (ASX:MLD)
• Road haulage to Wirrida siding – Giacci
• Crushing, screening and train loading – MACA
• Rail haulage Wirrida to Port Pirie – Genesee and Wyoming Australia
• Management and operation of Port Pirie facilities – Giacci
• Transhipment operations – CSL Australia

Most of these contractors are already well established in South Australia and in the Coober Pedy and Port Pirie areas in particular.

WPG looks forward to developing this exciting and highly lucrative project. It will be South Australia’s newest mine, and will transform the Company from explorer to producer status.