31/10/2007 - 15:51

Midwest Corp faces $3.3m loss due to haul issues

31/10/2007 - 15:51

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Iron ore producer Midwest Corporation is staring down the barrel of $3.3 million in lost earnings if it fails to secure an extension for road haulage of its ore from the State Government, with its current extension expiring today.

Midwest Corp faces $3.3m loss due to haul issues

Iron ore producer Midwest Corporation is staring down the barrel of $3.3 million in lost earnings if it fails to secure an extension for road haulage of its ore from the State Government, with its current extension expiring today.

Midwest was granted an extension in mid-October allowing the iron ore miner to haul its ore from its Koolanooka mine to Geraldton via road.

Midwest needs to complete railworks and anticpates a full transfer from road to rail would be achieved by the end of April 2008.

In its quarterly report today Midwest said it was confident that the minister for planning and infrastructure Alannah MacTiernan would give serious consideration in granting an extension until a train loading spur can be constructed and full rail haulage achieved.

The company said if it failed to secure the extension it had forecast an earnings before interest, tax, depreciation and amortisation loss of $550,000 a month until the end of April 2008.

 

 

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