01/11/2007 - 10:01

Midwest gets road haul extension

01/11/2007 - 10:01

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Iron ore miner Midwest Corporation Ltd has been granted a last minute extension by the minister for planning and infrastructure Alannah MacTiernan to continue trucking its ore to the Geraldton port until December 31.

Iron ore miner Midwest Corporation Ltd has been granted a last minute extension by the minister for planning and infrastructure Alannah MacTiernan to continue trucking its ore to the Geraldton port until December 31.

Midwest's haulage licence expired yesterday and faced the possibility of putting its Koolanooka mine on care and maintenance unless it could gain another extension.

The miner needs to construct a train loading spur before it can begin transporting its ore via rail, which it anticipates to complete by the end of April 2008.

Midwest revealed yesterday that if it did not get an extension it faced lost earnings of up to $3.3 million.

The company had been hopeful that the minister would approve an extension until April, however, it is now likely the company will need to seek a further extension next month.

Midwest chief executive Bryan Oliver said Midwest had made a concerted effort to move to rail.

"However, these efforts have been delayed by circumstances beyond the company's control," he said.

Midwest has revealed that for each month the mine is put on care and maintenance it would lose $550,000 in earnings before interest, tax, depreciation and amortisation.

 

A statement from Midwest is pasted below:

Midwest Corporation Limited ('Midwest') wishes to advise that the Western Australian Minister for Planning and Infrastructure, Alannah MacTiernan, has extended the company's permit to haul its ore by road from Koolanooka to Geraldton until 31 December 2007.

This now provides the company with the opportunity to expedite the necessary approvals for Tilley Siding. Midwest will continue to progress approvals for the expansion of its Koolanooka/Blue Hills Direct Shipping Project. Midwest CEO, Bryan Oliver, said, "Midwest has, in good faith, made a concerted effort to move to rail. However these efforts have been delayed by circumstances beyond the company's control."

"We appreciate the Minister's willingness to provide a further extension to our road haulage operations," Mr Oliver said.

Midwest will continue discussions with the government towards facilitating a satisfactory outcome to its road/rail transition in the best interests of all stakeholders.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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