$1 billion iron ore project to start in May

27/3/00
Construction of the $1 billion West Angelas iron ore project in the Pilbara is set to start in May.
Resources Development Minister Colin Barnett said the investment would include a mine, 340km rail extension to the central Hamersley Range and expansion of port handling facilities at Cape Lambert.
Mr Barnett said the expected employment of local contractors would greatly increase opportunities for the engineering sector in the area.
"After a quiet period for local contractors, this could be the first in a major surge in resource development activity in Western Australia," he said.
"Employment opportunities will also be significant with jobs for 1,500 during the construction phase and 300 full-time jobs when the mine is operating.
"Major shareholder and development manager for the project, North Limited, sees West Angelas as an important cog in moving the company into the top league of world iron ore traders.
"West Angelas - at capacity - will add 20 million tonnes a year pushing North Limited's production to 50 million tonnes from Western Australia.
"This will give the State three major-league suppliers."
Mr Barnett said West Angelas would be the first major development to ship pure Marra Mamba ore instead of the blended product, further adding to the diversity of products shipped from the State.
He said this was important to WA's long-term future because a significant percentage of the remaining marketable resource base was of Marra Mamba-type ores.
"The establishment of a third rail link from the central Pilbara to the coast will put a network of infrastructure in place - developed by iron ore companies - to serve the long-term future of the industry," the Minister said.
"I want to see such infrastructure used effectively and efficiently by all parties through commercially negotiated access arrangements."
Robe River Mining, the operator, first approached the State Government early in 1997 to initiate development approvals for West Angelas.
Three years later, significant environmental and other issues have been resolved over the rail route and five native title agreements are in place between Robe and claimant groups.
Financial arrangements were in place for the project to go ahead and formal approval under the State Agreement Act would be finalised in the next few days.
"The support and confidence of the Japanese joint venture partners and steel mills have been critical in committing to a go ahead decision," Mr Barnett said.
"Letters of intent to substantially underwrite a big part of the sales volume are a vital factor.
"Some five to six million tonnes in the first year, rising progressively to 8 -10 million tonnes by the fourth year of production is a major commitment.
"Strong support from other customers in Asia and Europe should ensure a satisfactory build-up towards the project's capacity."
Mr Barnett said West Angelas was the first of a series of new projects in the Pilbara.
He said 1990 WA produced 100 million tonnes of iron ore and in 1997, 152 million tonnes.
He predicted that by 2010 WA would produce between 200 and 220 million tonnes of iron ore.
Western Australia produced 14 per cent of the world's iron ore and accounted for 34 per cent of the State's seagoing exports.
Media contact: Diana Callander 9222 9699