Jupiter flags major investment at Mt Ida

Jupiter Mines says it will spend $1.6 billion to develop its Mt Ida iron ore project in Western Australia's central Yilgarn.

Perth-based Jupiter released a scoping study on the magnetite project today, which was based on mining 25 million tonnes per annum and producing 10mtpa of magnetite concentrate over a 20-year mine life.

The scoping study was carried out by ProMet Engineers.

Jupiter said it would now launch a full feasibility study, to be completed before the end of next year, to identify the best option to develop the project.

Jupiter chairman Brian Gilbertson said the Pallinghurst co-investors, including Posco, Investec, Temasek Holdings and Smedvig Capital would likely back the investment.

"The Mt Ida Magnetite Project has the potential to transform the Central Yilgarn into an important Australian iron ore province," he said.

"The Pallinghurst Coinvestors remain fully supportive of these initiatives."

The company also said it has a scoping study underway on its Mt Mason DSO hematite project, which will be completed in late April.

The Mt Mason project offers Jupiter the opportunity to generate early cash flows from a 1.5mtpa DSO operation commencing in early 2013.

The company said it would undertake a feasibility study for Mt Mason concurrently with the study for Mt Ida.

"These projects broaden the foundation for Jupiter's strategy to provide raw material feedstock for the production of steel," a company statement said.