Wah Nam International is shrugging off the gloomy outlook for iron ore and pressing ahead with planning for development at its Marillana project in the Pilbara, targeting first production in 2016.
Wah Nam, which is in the process of renaming itself Brockman Mining, said a pre-feasibility study would be completed by the end of this year, followed by a definitive feasibility study in 2013.
If it goes ahead with the development, Wah Nam said construction at the project would be complete by 2016.
Wah Nam, which acquired Marillana through its takeover of Perth-based Brockman Resources, signed an alliance agreement late last month to explore the development of mine, rail and port transport infrastructure in the East Pilbara.
The company said Marillana's development timetable was dependent on the outcome of the alliance study and resolution of debt funding facilities for the project.
The Marillana project is located around 100 kilometres north west of Newman, and Wah Nam is targeting production of between 17 million and 20 million tonnes of hematite iron ore per annum.
At 1:10PM, WST, Wah Nam stocks were trading at 5.9 cents on the Australian Securities Exchange.