Mount Gibson Iron said the State Government has approved the upgrade of the train unloading facility at the Geraldton Port.
Mount Gibson Iron said the State Government has approved the upgrade of the train unloading facility at the Geraldton Port.
As a result of the upgrade, rail unloading capacity at the Geraldton Port will increase to 3000 tonnes per hour, allowing Mount Gibson to increase production from it Mid West operations through the commencement of operations at Extension Hill.
Mount Gibson has agreed to fund the upgrade up to $20 million and it is expected to be completed in time for the first shipments from Extension Hill in the September 2011 quarter.
The upgraded train unloading facility will remain a common user facility with Mount Gibson receiving a rebate from the Geraldton Port Authority should other users wish to use the facility over the next 10 years, capped at 20 million tonnes of third party throughput.
See company statement below:
Mount Gibson Iron Limited ("Mount Gibson") is pleased to announce that the State Government has approved the upgrade of the train unloading facility ("upgrade") at the Geraldton Port.
As a result of the upgrade, rail unloading capacity at the Geraldton Port will increase to 3000 tph, allowing Mount Gibson to increase production from it Mid West operations through the commencement of operations at Extension Hill.
Mount Gibson has agreed to fund the upgrade up to $20 million and it is expected to be completed in time for the first shipments from Extension Hill in the September 2011 quarter.
The upgraded train unloading facility will remain a common user facility with Mount Gibson receiving a rebate from the Geraldton Port Authority should other users wish to use the facility over the next 10 years, capped at 20 million tonnes of third party throughput.
Mount Gibson's Managing Director Luke Tonkin said:
"We are pleased to have finally agreed with the Geraldton Port Authority to upgrade the existing train unloading facility. It will allow increased throughput of the facility that will more closely match the shiploading capacity through the Geraldton Port's dedicated iron ore shiploader at Berth 5. We acknowledge the support and cooperation of the Minister for Transport and Disability Services, the Honourable Simon O'Brien and the concurrence of State Treasury."
Extension Hill Hematite Project Progress
Construction of the Extension Hill Hematite Project ("project") and associated transport infrastructure is progressing as scheduled. As previously announced the upgrade of the rail line from Perenjori to Mullewa by WestNet Rail will dictate when full production from Extension Hill can be transported to the Geraldton Port and this upgrade remains on schedule to be completed in June 2011.
Mine development and production at Extension Hill is scheduled to commence in January 2011 to build sufficient ROM stockpiles for crusher commissioning in April 2011.
Significant final product stockpiles will be generated at Extension Hill and at the Perenjori Rail Siding prior to the commencement of railing to the Geraldton Port in June 2011, with the first shipments in the September quarter 2011.