05/06/2013 - 10:22

Grange says it is still keen on Southdown

05/06/2013 - 10:22

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Drilling operations at Grange's Southdown project, around 90km north east of Albany.

Grange Resources says it is still committed to its Southdown iron ore project near Albany, despite announcing yesterday it would close its Perth office and move its administrative operations to Tasmania without managing director Richard Mehan.

The company said today that no decision had been made to shelve the Southdown project, contrary to widespread media speculation, and all tenements, permits and project assets would be maintained in good order.

It also said it would continue to seek an equity partner in return for a strategic stake in the project.

Grange holds a 70 per cent stake in Southdown, with the remaining 30 per cent held by SRT Australia, a joint venture between Japanese giants Sojitz Corporation and Kobe Steel.

Grange pulled back its spending at Southdown in November last year, saying uncertain market conditions had forced it to limit total expenditure for 2013 to around $2.5 million.

Staff at the Perth office was cut from 24 to six in November.

Yesterday Grange said all remaining Perth-based functions would relocate to Burnie in Tasmania, and Mr Mehan would step down as managing director.

Chief operating officer Wayne Bould will take over the managing director position.

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