The massive Sino Iron project is being developed by CITIC Pacific Mining at Cape Preston, 100 kilometres south west of Karratha in Western Australia’s Pilbara region.
The project is a partnership between Hong Kong based CITIC Pacific (80%) and MCC – China Metallurgical Group Corporation (20%). CITIC Pacific Mining is an Australian subsidiary of CITIC Pacific, a Hong Kong incorporated company listed on the Hong Kong Stock Exchange. Its key business interests include property development, specialty steel and iron ore mining. Its majority shareholder is the CITIC Group, a large diversified Chinese state-owned enterprise.
The Sino Iron project will mine magnetite iron ore rather than the hematite iron ore that is traditionally mined in the region. Magnetite requires beneficiation before it can be used in the steel making process and is a desirable quality product for steel mills, including those of CITIC Pacific in China. The Sino Iron project was granted major project facilitation status by the Australian federal government in 2006 after entering into agreements with Mineralogy Pty Ltd to acquire rights to one billion tonnes of resource, over part of a deposit known as the George Palmer deposit. During 2008 CPM acquired rights to a second billion tonnes of resource giving the project an expected mine life of about 25 years at a production rate of about 28 million tonnes per year. CPM has rights to acquire an additional four billion tonnes which would lift production to 70 million tonnes each year.
The project features significant investment in dedicated infrastructure including concentrate processing, pelletising, a 51 gigalitre desalination plant and new port facility, as well as a 450 MW combined cycle gas fired power station. Ore will be processed into magnetite concentrate and pellet and about 28 million tonnes of product will be exported each year; six million tonnes as pellets and about 22 million tonnes as concentrate. CPM is headquartered in Perth and has a representative office in Beijing.
As CITIC Pacific’s first major investment in Australia, the Sino Iron project is focused on delivering a world class magnetite iron ore development which will add value to the Western Australian economy while balancing social and environmental considerations.
The Sino Iron Ore project is a highly important project for both Australia and China. It is one of China’s largest investments into the Australian resources sector. It is also the largest magnetite mining and processing operation under construction in Australia. Once completed, it will become the first Chinese-owned mining company to ship iron ore products from WA to China. Australia and China will enjoy mutual wide-ranging benefits from the Sino Iron project including long-term economic, social and community dividends for decades to come.
Recruitment efforts will ramp up over coming months and primarily target prospective operations employees, but also construction positions. About 600 operations employees will be needed to run the project.
To keep abreast of news for the project, follow us on The Resource Channel and also check our website for updates at: http://www.citicpacificmining.com [3].