$320m expansion at Koolyanobbing

US-based Cliffs Natural Resources has approved a $320 million expansion of its iron ore operation at Koolyanobbing, north of Southern Cross.

In a statement to the New York Stock Exchange, Cliffs said the incremental capital investment would allow Koolyanobbing to produce about 11 million tonnes of ore annually.

The funds will be used to enhance the company's existing rail infrastructure, increase its rolling stock and upgrade existing operational constraints.

"We are enthusiastic about the expected organic growth these improvements will generate for our Asia Pacific Iron Ore operations," said Cliffs' senior vice president and managing director, Asia Pacific Iron Ore, Duncan Price.

"We acknowledge the support of, and effort by, the Western Australian Government in overcoming significant policy uncertainties which had delayed key permits," he said.