Other WA mining projects to watch

Balla Balla Project, Western Australia

Aurox Resources – a Pilbara based iron ore developer – has secured Environmental Ministerial Approval from the Western Australian Government for its 100% owned Balla Balla iron ore project.

The project, which is located midway between Karratha and Port Hedland, is to mine and process up to 10.1 million tonnes per annum of magnetite ore over a 15 year mine life and is expected to achieve first production in early 2012.

This means that the Project will proceed as soon as the next stage of financing is secured. The number of jobs expected to be generated is unknown.

Tectonic Resources Gold Project, Western Australia

Tectonic Resources are in the advanced stages of planning to develop a gold mine – with an anticipated life span of ten years - at their Phillips River site between Hopetoun and Ravensthorpe. The soonest it could start construction is early to mid 2010, creating 120 jobs.

Balmoral South Iron Ore Project, Western Australia

In February 2010, Australasian Resources received Federal Environmental approval for their Balmoral South Iron Ore Project, just south of Karratha in Western Australia. Approval marks a significant step towards developing this project into a world-class iron ore venture. The means the impact assessment process is complete with the Project deemed to be environmentally acceptable. Australasian Resources now anticipates the imminent release of the State Environment Minister’s conditions for implementation of the project.

The open cut operation will utilize a crushing, grinding, wet magnetic separation and reverse flotation process.

The site is ideally suited geographically for export to major markets, has a 20+ year expected mine life with opportunity for expansion. The site also has infrastructure certainty being adjacent to Citicpacific’s Sino Iron Ore project.

Construction is not expected to commence until mid 2010, through to the end of 2012, with first production to commence early 2013.

There is no word yet on how many jobs are likely to be generated for this project.

BHP Billiton’s Yeelirrie Project, Western Australia

BHP Billiton owns the Yeelirrie undeveloped uranium deposit – Australia’s second largest - in central Western Australia, located near Wiluna. Currently in its identification stage, the development project aims to design and build Western Australia’s first large scale uranium mine. Timeframes and number of potential jobs are unknown. Recruitment for senior and technical roles has been underway for some time, directly through BHP Billiton.

Southdown Project, Western Australia

Grange Resources Limited owns and operates Australia’s largest integrated iron ore mining and pellet production business located in the northwest region of Tasmania. The Savage River magnetite iron ore mine, 100km southwest of the city of Burnie, is a long life mining asset set to continue operation to 2023 with current reserves estimated to extend the mine life to 2028. At Port Latta, 70kms northwest of Burnie, is Grange Resources’ own pellet plant and port facility producing approximately 2.3 million tonnes of premium quality iron ore pellets annually with plans to increase annual production to 2.7 million tonnes by 2010. Long term supply contracts see these pellets shipped to major steel producers in Australia and Asia.

As well as this profitable magnetite operation, Grange Resources is developing a world class magnetite development project at Southdown, 90kms northeast of the Port of Albany in Western Australia, which has recently received the final all-clear from the Western Australian Environment Minister. The green light was also given for the proposed pipeline infrastructure that will accompany the mine. The Southdown project has a 30 year mine life, and will generate 1,000 jobs during construction and 600 permanent staff during operation.

The US$1.6bn Southdown development project is forecast to supply nearly three times the amount of ore iron from Savage River, being 6.6 million tonnes of premium magnetite concentrate annually. Plans are to ship this concentrate to a dedicated pelletising facility to be built at an as-yet undecided location.

Grange Resources Limited is Australia’s only commercial producer of magnetite pellets.

At Albany Port, the construction of a new berth will be required and the Albany Port Authority will reclaim land to accommodate a concentrate storage facility and ship loading infrastructure.

Widening of the existing shipping channel into Princess Royal Harbour and extending the channel into King George Sound is also proposed to facilitate the access of capesize vessels.

Grange intends to export the Magnetite concentrate from Albany to a new pellet plant located at a suitable location. The design capacity of the pellet plant is 6.8 Mtpa. These pellets are forecast to be suitable for use in producing Direct Reduced Iron (DRI).