Way cleared for West Angelas iron ore project in Pilbara

24/1/00
The way is now clear for the participants in Robe River Iron Associates to formally commit to the West Angelas iron ore project in the Pilbara.
Resources Development Minister Colin Barnett said the signing of letters of intent by the seven Japanese steel mills for long-term supply of West Angelas ore was a great step forward.
"This is a significant advance for the Western Australian iron ore export industry in securing sales of Marra Mamba ore," Mr Barnett said.
"I would also like to congratulate the project team for its marketing success in achieving today's signing.
"The team has been working for a long time on this project and in a very professional way. Throughout this period there has been an excellent relationship between the State Government and Robe River Iron."
The Minister said that although Marra Mamba ore had made up a modest percentage of Australian blended ore supplies for a number of years, and a couple of trial shipments of Marra Mamba ore had recently been made, West Angelas would be the first major long-term contract supplier of Marra Mamba ore to the market place.
"With total State resources of over eight billion tonnes of marketable grades, Marra Mamba will inevitably provide a growing base for the State's iron ore production in the long term," Mr Barnett said.
He said major approvals, such as environmental and native title, had been completed for West Angelas.
"I am expecting confirmation shortly that financial arrangements have been completed for West Angelas, so that I can give formal approval under the State Agreement Act for development to proceed," the Minister said.
Initial production at West Angelas is planned at six million tonnes per annum, which will progressively grow over succeeding years to full design production of 20Mt per annum.
Robe River Iron Associates is 53 per cent owned by Australian miner North Limited, in joint venture with Mitsui, Nippon Steel and Sumitomo Metal.
Initially 5Mt per annum of sales commitments have been made by the Japanese steel mills, increasing to 8Mt per annum by the fourth year.
Mr Barnett said that while initial sales contracts have come from Japan, Robe was not restricting itself to sales in Japan alone.
"Other areas, such as China, Korea and Taiwan, are seen as important supply outlets, while the ore has also been promoted in Europe," he said.
The Minister said the development of the West Angelas project would represent a significant increase in output for Robe River Iron and was consistent with the State Government's policy of three major iron ore producing systems in the Pilbara region.
Media contact: Mike Groves 9222 9699