Mine opening a 'shot in the arm' for Mid-West economy

13/5/04
Today's official opening of the Tallering Peak Iron Ore Mine, 170km from Geraldton, will deliver major economic benefits to the Mid-West economy for years to come, according to Planning and Infrastructure Minister Alannah MacTiernan.
Ms MacTiernan said completion of the Gallop Government's $103million Geraldton Port Enhancement Program had paved the way for Mount Gibson Iron Ltd to ship more than two million tonnes of iron ore out of the region annually.
"Geraldton is exporting iron ore for the first time in 30 years as a direct result of our decision to deepen the harbour basin and access channel and upgrade key port infrastructure," she said.
"If the volume projections are achieved, iron ore will eventually overtake grain as the main revenue source for Geraldton Port.
"The Mid-West is now a very attractive proposition for exporters such as Mount Gibson Iron.
"Today's mine opening is only the tip of the iceberg in terms of the opportunities Geraldton Port will deliver to the region during the next few years."
Independent external advice suggests the Port Enhancement Project has added $68million to the Mid-West economy and will create more than 500 jobs.
Tallering Peak has a development value of about $50million, with up to 20 million tonnes of high-grade haematite to be mined and exported during the next decade.
The operation has already delivered more than 70 jobs to the region.
MGI also intends to develop a 1.5Mtpa haematite mine on the Extension Hill and Iron Hill deposits within the Mt Gibson Range, with the first shipments of ore planned for the third quarter of next year.
The company also recently signed an agreement to produce up to 10Mtpa of magnetite concentrate for a subsidiary of Hong Kong-based Asia Iron Holdings Ltd for a minimum of 15 years.
The magnetite will feed pellet plants that Asia Iron intends to establish in China.
By the end of 2005, MGI plans to be mining magnetite deposits at Koolanooka, about 200km south-east of Geraldton, at about 2.5Mtpa - this will be followed by development of a similar-sized magnetite deposit at Mt Gibson.
The projects would deliver an additional 300 jobs to the region.
"Within three to four years, the combination of haematite and magnetite projects planned for the region will see throughput at Geraldton Port jump to more than 8Mtpa," Ms MacTiernan said.
"This is a major vote of confidence in Geraldton and a shot in the arm for the Mid-West economy."

Minister's office: 9213 6400