Aquila Resources has passed a key milestone for its West Pilbara iron ore mine and rail project, after getting a nod of approval from the state’s environmental watchdog.
The Environmental Protection Authority has issue a recommendation of approval for the West Pilbara project, which Aquila plans to develop into a 30 million tonne per annum mining operation with a 282 kilometre rail link to its planned port facility at Anketell Point.
Aquila, which owns a 50 per cent stake in West Pilbara, said the recommendation allowed for a 15-year mine plan in accordance with its project schedule.
The Perth-based miner said work was continuing with the state government on the design of the proposed multi-user port at Anketell Point.
Aquila said substantial work had been undertaken to secure a significant debt facility to fund the company’s share of the port’s development costs.
A definitive feasibility study for the port is due for release in the next few weeks.
Rival miner Fortescue Metals Group is also keen to develop a port at Anketell Point, but is not as advanced as Aquila. In addition, the state government is evaluating whether a third party should lead development of the port, rather than a miner.
Aquila executive chairman Toni Poli said it was rewarding to achieve the significant milestone of environmental approval for the West Pilbara mine and rail link.
“We look forward to working constructively with the WA government and other stakeholders to deliver a strategically important port and rail solution to unlock the western Pilbara for a range of resources companies,” Mr Poli said.
“Having started the approvals process more than three years ago, we are mindful of delivering this project in a timely manner.
“We are on track to commence construction of the Anketell Port in Q2 2012 and this timeline has been welcomed by a number of other mining companies in the Pilbara.”
At 9:30AM (WST) Aquila’s stock had dropped 13.5 per cent, to trade at $4.63.