Premier and State Development Minister Colin Barnett today launched the first shipment of magnetite concentrate from CITIC Pacific's Sino Iron project, south-west of Karratha.
Launching the shipment with CITIC Group chairman Mr Chang Zhenming, Mr Barnett said the completion of the first stage of the project was a major boost for the State's emerging magnetite iron ore industry.
"The Sino Iron project is the first magnetite mine to reach production in the Pilbara and today's launch marks the first shipment through the newly completed Cape Preston port," he said.
"This is the biggest magnetite mining and processing operation under construction in Australia and is a further sign of the potential of the industry to stimulate new investment and construction activity throughout the State."
At approximately 30 per cent iron content, magnetite ore is lower grade than haematite, which is typically found at 60 per cent. However, once refined, the final magnetite product is a high-grade concentrate with iron content of more than 65 per cent, and is low in impurities.
"Western Australia has significant magnetite resources and this type of premium, value-added ore is preferred by many Chinese steel mills," the Premier said.
Mr Barnett said the integrated Sino Iron project, comprising a mine, concentrator, desalination plant, power plant and port, would produce many benefits for local communities, the region and the State over its expected 30-year life.
The Premier said the project's $4.8billion expenditure on Australian content to date was a great outcome for local contractors, with almost 60 per cent of that spent in Western Australia.
The project employed more than 4,000 people at peak construction and would employ 1,000 direct permanent jobs in full operation.
"Sino Iron is one of China's biggest investments in the Australian resources sector and, at full capacity, will be the biggest single-stage magnetite project in the world," Mr Barnett said.
"It has also stimulated development of the region's gas industry by becoming the foundation customer for Apache's Devil Creek project."
Once in full operation, the mine is expected to produce 27.6 million tonnes per annum of iron ore concentrate.
Fact File
The Sino Iron project is based at Cape Preston, 100km south-west of Karratha
Stage One includes construction of the first two of six production lines
Once complete, expenditure on the project will total more than $7billion
There are currently 29 potential magnetite mines at different stages of planning and development in WA, with 38 billion tonnes in estimated resources
WA's first producing magnetite mine, the Karara Iron Ore project in the Mid-West, was opened by the Premier in April 2013
In 2011, Deloitte Access Economics estimated that a magnetite industry could add $4.5billion and 4,000 jobs to Australia's economy - mostly in Western Australia
Premier's office - 6552 5000
