Gindalbie Metals Limited (ASX: GBG)
GINDALBIE
WELCOMES STUDY INTO WA STEEL MILL
WA PREMIER'S VISIT TO ANSTEEL UNDERPINS SUPPORT FOR
KARARA DEVELOPMENT
Gindalbie
Metals Limited (ASX: GBG - "Gindalbie") notes today's
report on the front page of The West Australian and is pleased to announce that
it supports the feasibility study surrounding a steel mill proposal for Western
Australia's Mid-West region.
During
last week's visit to China, WA Premier Mr Colin Barnett, signed an agreement
with Gindalbie's joint venture partner, Ansteel, to conduct a feasibility study
into an integrated iron and steel plant and rolling mill at the Oakajee
industrial estate near Geraldton.
Mr
Barnett's visit to China, during which he met directly with AnSteel President
Zhang Xiaogang highlighted the support of both the WA Government and Ansteel
for the development of the Karara Iron Ore Project. Mr Barnett also inspected
AnSteel's new Bayuquan Steel Mill at the Port of Yingkou in north-eastern
China, which has been designed to use Karara products as a key feed source.
Gindalbie also notes the ongoing support shown by Mr
Barnett during the China tour for the development of Oakajee Port. The
successful development of the new deepwater port, 30km north of Geraldton, will
underpin the ability of Karara to expand from its planned 8Mtpa start-up to
fulfill its long term potential of producing more than 30Mtpa for a mine life
of more than 30 years.
Gindalbie Managing Director and Chief Executive Officer Mr
Garret Dixon said Ansteel's commitment to a feasibility study was an extremely
exciting development for the Karara Project, which has offtake arrangements to
supply Ansteel's vast Chinese operations.
Ansteel, China's second-biggest steel producer has invested
$573 million into Gindalbie and the Karara Project.
Following last week's successful environmental appeal
outcome, construction on-site at Karara is expected to start in the December
Quarter, with first production of hematite scheduled for the end of next year,
and magnetite concentrate by mid-2011.
Mr Dixon said the multi-billion tonne Karara orebody could
comfortably underpin annual production of 30Mtpa for a mine life of more than
30 years, giving it ample scope to become a major exporter of iron ore
concentrate while also supplying feedstock for a WA-based steel mill.
"�nsteel has recognised the high quality of the Karara
iron ore with its decision to invest heavily in the Project," Mr Dixon
said. "Now, this agreement with the WA Government highlights the benefits
for Gindalbie of having a large strategic shareholder and partner with whom we
can pursue further opportunities for iron ore processing and value-adding.
Gindalbie is delighted that Ansteel is now proceeding with a feasibility study
into a steel mill at Oakajee."
"This project could provide another major market for
Karara's iron ore, in the process underpinning further expansions and
production increases. Gindalbie wishes Ansteel and the WA Government every
success with this study and offers its full assistance to the Project, which
stands to generate substantial benefits for Ansteel, Gindalbie and the overall
WA economy."
-ENDS-
Released by :
|
On behalf of:
|
Nicholas Read
Read Corporate
|
Mr Garret Dixon
Managing Director
|
Telephone: (+61-8) 9388 1474
|
|
Mobile: (+61) 419 929 046
|
Gindalbie Corporate
|
|
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.
READ CORPORATE
Public Relations Corporate
Communications
T: (+61-8) 9388-1474
| F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
PLEASE NOTE:
This e-mail and any attachments may contain
confidential and/or privileged material and is for the intended addressee(s)
only. If you are not an intended addressee, you must not use, copy, retain,
disclose or distribute this information. Please notify the sender immediately
by return e-mail and delete the message from your system. If you believe that
this message constitutes a Commercial Electronic Message (CEM) under the Spam
Act 2003 and you wish to unsubscribe please contact the originator of this
message with the subject line of unsubscribe.