$33 million upgrade for Robe River Pilbara operations

16/1/95

Resources Development Minister Colin Barnett has approved a $33 million upgrade for Robe River Iron Associates' Pilbara operations.

The program features a new primary crusher, or mine sizer, at Robe's Mesa J mine near Pannawonica.

The primary crusher, costing $11.7 million, will crush and size ore at the mine site; it will increase iron ore stockpile capacity at the mine and will improve the efficiency of transporting the ore to the company's port at Cape Lambert.

The Cape Lambert ore-crushing and screening plant will be upgraded at a cost of more than $10 million.  The plant will enable Robe to produce two million tonnes of lump ore material a year, in addition to its usual sinter fines product.

The work will lift the overall capacity of the Robe project from 25 million tonnes to 27 million tonnes a year.

The upgrading program will also involve an outlay of $11.5 million to purchase five new 190-tonne ore trucks.

The new trucks, to be assembled in Perth, will replace existing 170-tonne vehicles.

Mr Barnett said the overall upgrading program would feature 70 per cent involvement by Australian industry and all assembly and fabrication work would be carried out by Western Australian firms.

He said that Robe's upgrading program should also help cement its position as the world's fourth biggest iron ore exporter.

The project was a sign of the improving strength of the iron ore industry, which was experiencing an increased demand for ore due to a recovery in world markets for steel.

"It is gratifying to see an expanding market, especially in Japan, Robe's main customers, which is using an increasing quantity of sinter fines in its steel making mix," Mr Barnett said.

"Robe has also been successful in gaining a price increase of more than seven per cent for its iron ore exported to Japan.

"Along with increases secured by BHP Iron Ore and Hamersley Iron, this a great tonic for the health of the industry."

Media contact:  Carolyn Vicars - 222 9699