Gindalbie Metals Limited
(ASX: GBG)
Key Environment Appeals Upheld for Karara Iron
Ore Project by WA Environment Minister
Terapod Hematite Deposit
to be Included in Karara Project Development
Gindalbie
Metals Limited (ASX: GBG Gindalbie) is
pleased to advise that all of the key appeals lodged by the Karara
Joint Venture against the Environmental Protection Authority (EPA)’s
recommendations and conditions for both the hematite and magnetite phases of
the Karara Iron Ore Project have been upheld by
Western Australian Environment Minister, Donna Faragher.
Importantly,
the Minister has upheld the appeal on the Terapod
hematite deposit, clearing the way for it to be mined, together with the Blue
Hills North hematite deposit as part of the 2.0Mtpa hematite phase of the Karara Project.
As part of
the Ministerial determination, the Minister has noted the Joint Venture’s
offer to relinquish the tenements covering the Mungada
Ridge, on the basis that the Karara, Blue Hills
North, Terapod orebodies be
approved for development.
Terapod
is important to the hematite phase of the Karara
Project and Gindalbie has identified magnetite mineralisation below the hematite ore which will be
important to the future long term expansion of Karara.
In her
determination, the Minister has upheld the majority of appeal points lodged in
relation to inconsistencies and ambiguities identified within the Karara Report, as well as most importantly upholding the
appeal in relation to the Terapod deposit.
The
Minister has indicated that she will now consult with other relevant Ministers
to obtain agreement on the final conditions for the approval of the Karara Project.
Commenting
on the Minister’s announcement, Gindalbie’s
Managing Director, Mr Garret Dixon, said: This is
another very encouraging step forward for Karara, and
we are looking forward to working closely with the Minister and her colleagues
to agree on the conditions required to secure final
Ministerial approval to enable the Karara Project
development to proceed.
We are
confident that this can be achieved during the current Quarter, enabling us to
be on site in the December Quarter, 2009, to commence construction and
development activities, he added.
Gindalbie
Chairman, Mr George Jones, said from China that the
Minister’s decision came at an opportune time as it coincided with the
visit to China by WA Premier Mr Colin Barnett.
During his
visit to China, Mr Barnett is meeting directly with AnSteel President Dr Zhang Xiaogang,
and touring the Bayuquan Steel Mill, where Karara ore will be the main long term feed source, he said.
We also
note some very positive comments out of the China visit by the Premier
regarding potential Chinese involvement in the development of the Oakajee Port.
The successful development of Oakajee will underpin the long term future of the
Mid West iron ore industry, and in particular the expansion of the Karara Project to +30Mtpa.
With these
approvals Gindalbie and AnSteel
can now get on with the job of building the project and start to realise the potential that this Project has to add serious
value to the Joint Venture partners and to Western Australia.
The
Minister’s determination on the proposals and the Appeals Convenor’s Reports are available at www.appealsconvenor.wa.gov.au.
Released by :
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On
behalf of:
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Nicholas
Read
Read
Corporate
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Mr Garret Dixon
Managing Director
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Telephone: (+61-8) 9388 1474
|
|
Mobile:
(+61) 419 929 046
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Gindalbie Corporate
|
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Mr David Southam
Chief Financial Officer
Mr Michael Weir
Investor Relations Manager
Telephone: (+61-8) 9480 8700
www.gindalbie.com.au
|
About Gindalbie Metals Ltd
(ASX: GBG)
Gindalbie
is well advanced towards achieving its vision of becoming a leading independent
Australian iron ore company with a diversified portfolio of magnetite and
hematite production assets, located in the Mid West region of Western
Australia.
The
initial focus of Gindalbie’s growth strategy is
the Karara Iron Ore Project, located 225km east of Geraldton, where it will deliver initial production of
Direct Shipping Ore (DSO) hematite in 2010 to be followed by production of high
grade magnetite concentrate and blast furnace quality pellets in 2011. Karara is being developed through a 50:50 Joint Venture
with Ansteel, one of China’s leading steel and
iron ore producers. Gindalbie’s longer term
growth will be propelled by the exploration and development of its extensive
1,900 sq km tenement portfolio, which includes numerous prospective magnetite
and hematite exploration targets expected to deliver a long-term pipeline of
growth opportunities.
About Ansteel
Ansteel
is currently China’s second-largest steel producer and the biggest iron
ore miner. It is the major producer in the north-east
region of China, with crude steel production of 35 million tonnes
and plans to increase output to approximately 50Mtpa. Ansteel
is considered to be one of the country’s key growth companies and has
strong government support in securing new sources of long-term iron ore supply
through international investment.
Ansteel
has developed a new integrated iron and steel making facility at Bayuquan, adjacent to the Port of Yingkou,
approximately 100km south-west of its current steel making facilities in the
city of Anshan. The new facility has the capacity to produce 6.5Mtpa of
finished steel products. Once the Karara Project is
in production, its products will be the key feed source for Bayuquan.