Perth-based iron ore junior BC Iron has announced it has begun infrastructure construction at its Nullagine joint venture with Fortescue Metals Group, with the mine on schedule to deliver its first iron ore shipment to port by December.
Perth-based iron ore junior BC Iron has announced it has begun infrastructure construction at its Nullagine joint venture with Fortescue Metals Group, with the mine on schedule to deliver its first iron ore shipment to port by December.
The Department of Mines and Petroleum has issued BC Iron approvals for its project management plan, the mining proposal and the clearing permit, which has allowed work to commence on haul road construction.
The approvals will allow mining to start during the third quarter of 2010.
BC Iron's full announcement is below:
Australian iron ore development company BC Iron Limited (ASX: BCI) is pleased to announce that mining infrastructure construction has commenced at the Nullagine Iron Ore Joint Venture (BC Iron 50% : Fortescue Metals Group 50%) in the Pilbara region of Western Australia.
Approvals have been received for Stage One of the Project from the Department of Mines and Petroleum ("DMP"). The approvals comprise the Project Management Plan, the Mining Proposal and the Clearing Permit which allowed work to commence on Stage 1 haul road construction. These approvals will also allow mining to start during Q3 2010. Approvals for Stage 1, permit access from the Mining lease to public roads which will allow for the haulage of the first ore via the Newman-Marble Bar Road.
In addition, continuous mining tenure has been secured for the Project between the Project mining areas and Fortescue Metals Group's (FMG) rail head at the Christmas Creek Ore Processing Facility.
The Project Approval process has been split into three Stages to allow construction and operations to commence on the Mining lease and northern haul road whilst approvals progress on the central and southern haul road areas.
Approval has been received for the Project Management Plan for Stage 2 (central haul road) and Stage 3 (southern haul road) with the Mining Proposals and Clearing Permits currently being assessed by the DMP. Approvals from the DMP for Stages 2 and 3 are expected during Q4 2010.
Section 18 approval for Stage 2 has been granted by the Department of Indigenous Affairs and heritage surveys for Stage 3 are underway. If required, applications for section 18 approval for Stage 3 will be submitted during the current quarter.
BC Iron has also finalised the key components of its JV and Infrastructure agreements with the Fortescue Metals Group. These include confirmation of the Project's initial 3mtpa production capacity, which will increase to 5mtpa once FMG's increased infrastructure capacity is completed (expected by 30 June 2012), operational matters in relation to rail haulage and port services, rail and port rates, a joint 50/50 share of the Project revenues as well as BCI's JV management fee and FMG's marketing fee.
The Company confirms that the Project is still on track to deliver two key timelines:
o 1Mt shipped by 30 June 2011; and
o First ore on ship (FOOS) by December 2010.
