Final environmental approval for Karara

The Department of Environment’s decision, which follows the announcement of State environmental approval on September 9th, represents the final regulatory approval required for on-site construction and development work at Karara to proceed.
Following this key milestone, initial work involving clearing, preliminary earthworks and other site establishment activities will commence on site at Karara next week, ramping up to full-scale construction next year.
Located 500km north-east of Perth, the Karara Project is a major integrated iron ore project which will produce both Direct Shipping Ore (DSO) and high-grade magnetite concentrate over several decades - generating substantial positive economic benefits for the Mid West region and the State of Western Australia.
Work has already commenced on construction of the 300-person Lochada Camp, located between Karara and Morawa, which will house part of the initial construction workforce for the Karara Project.
This camp will subsequently be responsible for construction of some of the lineal infrastructure required for the Project including the rail spur and power line to site. Construction of Lochada Camp is scheduled to be completed in December 2009.
The on-site clearing and earthworks commencing at Karara next week will prepare the site for the full-scale construction of the Karara Concentrator to start early in the New Year.
Three major contracts with a combined value of approximately $400 million are expected to be awarded in the next three months following receipt of the final Commonwealth approval. These contracts include earthworks and concrete, design and installation of the Karara Village, and construction of the ancillary port facilities. Other major contracts will also follow in the subsequent months.
“This is a very exciting time for Gindalbie and our partner Ansteel,” said Gindalbie’s managing director, Garret Dixon. “The Project schedule is now in our hands and we can get on with the task we have all been waiting to get stuck into - building a world-class iron ore project.
“I would like to take this opportunity to thank the Premier’s Department and the WA Government for their ongoing support and the Federal Government for this final approval, enabling us to achieve our targeted timeline for commencing site clearing works to enable full-scale construction to kick off early next year.
“We expect to have up to 500 people on site by January and up to 1,000 by June next year, providing a significant economic stimulus to the Mid West region and bringing exciting new opportunities to this emerging iron ore province and the State of Western Australia,” he continued.
“Our focus now will be very much on efficient project management, costs and scheduling to ensure that we deliver a world-class iron ore project within our budgeted development timeframe, with the key objective of commencing exports of high-grade magnetite concentrate to China in 2011,” Dixon said.