Gindalbie iron ore project gets EPA go-ahead

The project is located 225 kilometres east of Geraldton in Western Australia’s Mid West region and is being developed through a 50:50 joint venture with AnSteel, one of China’s leading steel producers.
The release of the EPA reports, which contain the EPA’s assessment, report and recommendations to the Minister for the Environment, represents a major milestone for the project.
The report has concluded that with the implementation of Ministerial Conditions the development of the flagship multi-billion tonne Karara Project could be undertaken, allowing on-site construction to proceed in the second half of this year. “While these conditions are under review, the majority of the conditions are consistent with a sustainable approach to mining and development,” the company said in a statement.
In April 2009, the Liberal-National Government advised that a portion of the Mungada Ridge, which was located in the Blue Hills Range, would be set aside as a Class A Nature Reserve and protected from development. The EPA had supported this approach as one of the main conditions that would enable the project to go ahead.
Jones acknowledged the support of the WA Government, and in particular Premier Colin Barnett.
“At a time when many resource projects in Western Australia are being closed, cancelled or cut back, it is very pleasing to be announcing a positive milestone for a project in the Mid West region that will result in the investment of some A$1.8 billion, providing long-term employment, opportunities and economic stimulus both for the region and the State,” he said
With a life of more than 50 years, the Karara Project will generate direct and indirect employment of over 600 new Mid West jobs, more than 1500 jobs during the construction phase. It is forecast to generate annual export revenue of around A$1 billion, some $630 million in capital contributions to upgrade regional infrastructure, as well as significant new opportunities for economic and business development and training programs to provide skills and vocational education.
Premier and State Development Minister Colin Barnett said, “The EPA’s view that mining in this area would not increase the threat status of species and communities with the establishment of a Class A nature reserve and the implementation of the recommended Ministerial Conditions in relation to vegetation, fauna and rehabilitation, is good news for the State,” he said.
He also took the opportunity to expound the benefits of the Oakajee Port development, saying the progress of the Karara Project highlighted the importance of developing a world-class shipping facility.
The company is aiming to begin hematite production in the second half of 2010 at a capacity of 10 million tonnes a year and magnetite concentrate in the first half of 2011.
The iron ore would be exported through Geraldton Port until Oakajee comes on stream in 2013-14.