Go-ahead for ilmenite mining at Beenup

State Cabinet is to allow mining of ilmenite to go ahead on a trial basis at Beenup.

Large sample quantities of the ore are to be sent overseas for evaluation and processing.

"Between 0.75 and 1.4 million tonnes of ore will be mined by Mineral Deposits Ltd, a subsidiary of BHP," Premier Carmen Lawrence said today in Collie.

"This will allow between 10,000 and 20,000 tonnes of ilmenite to be tested on a commercial scale before the company can secure binding sales contracts," she said.

"This evaluation process is necessary before Mineral Deposits can make a decision on the full-scale, $150 million project.

"The State Government has already given support for the overall project, east of Augusta.  It is proposed that 500,000 tonnes of ore - from which titanium dioxide pigment is produced - will be mined per year.

"However, the mineral sands market is currently depressed, and the company has made it clear that it must convince potential buyers of the suitability of its product before it makes a decision on the go-ahead for the overall project."

The Premier said the company would spend up to $10 million on the test program.

"Site works are likely to begin early next month, and about 30 jobs will be created over the trial period, which is expected to last between five to eight months.

"All relevant State agencies will be directed to expedite necessary approvals and licences to allow the company to proceed with the trial mining proposal.

"The Department of State Development will be the main agency dealing with the project, and will facilitate and co-ordinate the program."