Paraburdoo project will ensure competitiveness in international iron ore market

30/8/94

Hamersley Iron Pty Ltd's Paraburdoo iron ore fines processing project was another important move to ensure Western Australia's competitiveness in the international iron ore market, Resources Development Minister Colin Barnett said today.

Mr Barnett's comments were made in response to Hamersley Iron's announcement of plans to invest $68 million in the construction of an iron ore fines processing facility at Paraburdoo. The plant will take about 10 months to build and will employ a peak work force of 150.  It will have local content of about 90 per cent.

The Minister said the construction and continued operation of the Paraburdoo project would satisfy the last of Hamersley's further processing obligations under the Hamersley Range Agreement.  Such processing obligations had included a pellet plant, a concentration plant and the HIsmelt facility at Kwinana.  Other processing obligations remained between the company and the State.

The processing facility would extract ultra-fine particles, which had a higher level of impurities, from all fine ore produced at Hamersley's Paraburdoo and Channar mines to result in higher-quality export product.

Mr Barnett said the State would gain multiple benefits from this investment.

"The company would be able to pursue increased sales for its fines blend on the world market," he said.

"Increased sales would represent additional royalty revenues, more direct and indirect jobs and a greater utilisation of the State's resource base.

"The construction of the facility will also prove a boon to many local companies which are well placed to win up to 90 per cent of contracts generated by it."

Construction is expected to commence in September and commissioning to be completed by June 30, 1995.

Mr Barnett said iron ore was the State's second biggest export commodity after gold and contributed nearly $3 billion to Western Australia's total exports during 1993-94.

"The outlook for the industry remains positive with demand in the medium term expected to rise, driven by expanding steel sectors particularly in China, South Korea and Taiwan," Mr Barnett said.

"Iron ore continues to be the backbone of this State's resource strength and the industry is well placed to take advantage of emerging opportunities.

"This substantial investment in a time of low ore prices is a major commitment by Hamersley and is indicative of the forward-thinking approach needed to remain competitive in what is an increasingly tough market."

Media contact: Carolyn Vicars - 222 9699