BC on track to start Nullagine this year

BC Iron says it is set to start production at the Nullagine iron ore project in the second half of this year, after striking a deal with the Palyku Native Title Claim Group.

The native title agreement paves the way for the granting of the mining lease for Nullagine, which is a joint venture with Fortescue Metals Group.

BC Iron was assisted by Kellie Hill of KHC Consulting whose experience and guidance in the negotiations contributed significantly to this positive and timely outcome. The Palyku Group were assisted by Gavin Maclean, Solicitor, who also strongly contributed to the consultative process that existed between the parties.

Palyku Working Group chairman David Milroy said: "This represents a very important day for the Palyku people. The Agreement recognises the importance of our culture and heritage and demonstrates that the Palyku are organized and capable of negotiating an appropriate commercial arrangement that delivers benefits to all parties and will leave a positive impact on the people and communities of the region.

"We have enjoyed working with BC Iron and we look forward to progressing this exciting project with them," said Mr Milroy.

BC Iron managing director Mike Young said: "We have been working closely with the Palyku for almost three years and we have found them to be very straightforward and a pleasure to deal with. We have been very open in our approach and this has created the foundations for a strong relationship with the traditional owners of the region.

"I believe that this represents a genuine "win-win" outcome for both parties. BC Iron has a strong commitment to education, training and employment for the Palyku people as well as the wider community. This is supported through the establishment of the Nullagine JV Scholarship Fund within the Agreement.

"The Palyku recognises the positive impact the development of the project will have on the local community and we look forward to working with them as a fundamental stakeholder in the development of the Nullagine Iron Ore Project."

Subject to final environmental and regulatory approvals, production is scheduled to start in the 2nd half of 2010 at the rate of 3Mtpa of high-quality, direct shipping iron ore. Construction of the Stage One accommodation camp, to be used for exploration and heritage surveys will commence on site next week.