Windimurra Mine opening

8/5/00

The successful commissioning of Australia's first vanadium project - the $121 million Windimurra vanadium mine and processing plant in the State's Mid-West region - will make Western Australia a world leader in the production of vanadium.
Speaking at the official opening of the project, Resources Development Minister Colin Barnett said Windimurra reflected a new era in resources development in WA.
The project was developed through a joint venture between Precious Metals Australia and Xstrata AG an affiliate of Glencore International, one of the world's largest commodity traders.
"Windimurra is an alliance between a local company with a big vision and a major international minerals house,"
Mr Barnett said.
"Using complex technology and a large ore resource, they will create a high value-added product worth about US$5500 per tonne at current prices.
"With a project life of 30 years, and annual production worth an estimated $60 million at capacity, Windimurra will continue to provide an enormous boost to the regional and State economies."
Mr Barnett said Windimurra - 100km south-east of Mt Magnet in WA's Mid-West region - would produce 7,200 tonnes of vanadium pentoxide a year at capacity which represented about 12 per cent of world production.
He said the project consisted of a mine operation and processing plant powered by a 12 megawatt gas power station built for the Australian Gas Light Company (AGL) and Western Power by Energy Power Systems Australia.
Gas was supplied via the AGL/Western Power 370km Mid West gas pipeline from Geraldton.
The State Government provided interest free finance to Western Power to help with the pipeline project.
"The Windimurra project was the catalyst for the Mid West pipeline which will bring gas into this highly prospective region of the State which the Government is keen to see develop and prosper," Mr Barnett said.
"The availability of gas to the area will be a huge boost to the regional economy and will inevitably provide the incentive for further major resource development.

"This new energy infrastructure would most likely see the existing diesel-fired power station servicing Mt Magnet replaced with a gas-fired power station operated by either by Western Power or a private sector operator. When stage two of the pipeline goes ahead the towns of Cue and Meekatharra will also be able to switch to gas-fired power.
"This could lead to a reduction in Western Power's more than $3 million yearly losses in the area and has the potential to significantly improve competitiveness in the mining sector for existing and future projects."
Mr Barnett said the State Government had begun construction of a new road from Mt Magnet to Leinster improving access to Windimurra development and the Northern Goldfields area.
"The first 50km of the Mt Magnet to Sandstone Road to the Youanmi turn off has been upgraded," he said.
"Main Roads WA finished work on this section of the road in December 1999 and the Shire of Mt Magnet will seal another five kilometres in 2000.
"Demand for vanadium is heavily reliant on steel production because its primary use is as an alloy for hardening and strengthening specialist steel for the aerospace, petroleum, construction and tool making industries.
"The Windimurra project created more than 400 jobs during its 18-month construction period with up to 120 permanent positions during operation."
Media contact: Diana Callander 9222 9699