A high level meeting of the key players in the Chinese-owned Sino Iron project in Beijing has confirmed the delay-plagued Pilbara magnetite production plant would be commissioned this July.
A high level meeting of the key players in the Chinese-owned Sino Iron project in Beijing has confirmed the delay-plagued Pilbara magnetite production plant would be commissioned this July.
Led by the most senior executives in CITIC Pacific, the Hong Kong-listed 100 per cent owner of the project, and attended by the leadership of its major partner and head contractor Metallurgical Corporation of China, the meeting was referred to as a review but appears to have been called to realign key parties in the project which is understood to be about a year behind schedule and set to cost more than $1.7 billion more than the original $3.5 billion price tag.
CITIC Pacific is controlled by CITIC, a state-owned Chinese company.
CITIC's full announcement is below:
With the aim of bringing CITIC Pacific's magnetite iron ore mine in Western Australia into
production as early as possible, CITIC Pacific Mining gathered major contractors,
equipment manufacturers and suppliers in Beijing last week to review progress and
cement action plans.
During the meeting, participants, including the project's main concentration processing EPC (engineering, procurement and construction) contractor - Metallurgical Corporation of China ("MCC"), focused on the critical path towards commissioning of the first production line.
Through detailed discussions, all parties have been assigned and agreed to specific tasks ahead and the timing required to meet their targets.
Following the meeting, CITIC Pacific believes that all components needed for the operation of the first production line should be ready for commissioning as an integrated system by the end of July, 2011. Production will then begin and the system will be fine-tuned.
Export of iron ore is expected towards the latter part of the year.
Led by the Chairman and the Managing Director of CITIC Pacific and the Executive Chairman of CITIC Pacific Mining, the meeting in Beijing was attended by over 50 representatives from 20 organizations.
Executives present included the Chairman and the President of MCC, Chairman and President of CITIC Heavy Industries, the Deputy General Manager of Sinotrans Eastern China and senior managers of Siemens, ABB, Schneider Electric and others. Participants expressed strong commitment to put all necessary resources into the project to enable the start of operation according to plan.
Much progress has been made in recent months both on the construction front and on
preparation for future operation. Currently, there are over 3,800 workers on site.
On Tuesday January 18, CITIC Pacific took delivery of the first of its twelve 115,000 tonne vessels.
These vessels will be utilized to take iron ore from CITIC Pacific's mine in Western Australia to China.
