Premier Colin Barnett joined a ceremony to mark the beginning of construction of the $1.8billion Karara Iron Ore Project, in the State's Mid-West region.
Mr Barnett said the Karara project, an Australian-Chinese joint venture between Gindalbie Metals and Anshan Iron and Steel Group Corporation (AnSteel), was a major landmark in the development of the Western Australian iron ore industry.
"Karara is the most advanced of proposals for large-scale iron ore mining in the Mid-West and its impact across a projected 35-year life span will be significant for surrounding communities and the State generally," he said.
"Project construction will employ 1,500 people and there will be 500 jobs when the mine is operational.
"The project's local preference policy will create opportunities for businesses and residents in towns like Morawa, Mullewa and Perenjori; for local farmers seeking additional income; and for other firms in the Mid-West."
The Premier said the project further strengthened the Australia-China trade and development relationship, which was currently among the most important in the world.
"Ansteel, China's biggest iron ore miner and second biggest steel producer, will be providing valuable expertise in mining and processing magnetite ore that will benefit the State," he said.
"In return, WA will provide Ansteel's new steel mill in China with a competitive and reliable supply of quality iron ore concentrate."
The Karara Project will also lead to a major upgrade of regional infrastructure, including expanded power supply and improvements on the local rail network.
Importantly, with production targeted to reach 30 million tonnes annually, Karara will be a foundation customer for the new deep water port at Oakajee.
Mr Barnett said the State Government's decision to build a 330kV line from Pinjar to Eneabba provided the partners with the assurance they needed to progress the project.
He said the Government had acted decisively in imposing conditions that protected the environment while enabling the mine to proceed.
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