Decision to delay recommissioning of pellet plant makes sense

15/8/96

Resources Development Minister Colin Barnett said it was understandable that Robe River Iron Associates had decided to defer the recommissioning of its iron ore pellet plant in the Pilbara.

Mr Barnett said it made sound commercial sense for Robe to delay the decision to re-open the plant until it had determined the characteristics of pellets made from West Angelas ore.

"Recently, Robe River Iron Associates embarked on studies looking at mining iron ore from its West Angelas deposit, 110 km west north west of Newman," Mr Barnett said.

"The pellet plant could still proceed at some stage after the completion of these West Angelas studies."

The pellet plant was closed in 1980 following a huge rise in oil fuel costs. However, the deregulation of the WA energy industry more than 18 months ago dramatically cut gas and power costs in the Dampier region, which prompted Robe to look at re-opening the plant.

Media contact: Justine Whittome 222 9699