Min Res starts building IOH mine

Iron Ore Holdings has announced its development partner mining services company Mineral Resources has begun construction on its Iron Valley Project.

Iron Ore Holdings said it expects to receive its first revenue from the mine at Iron Valley by the end of this year.

The company initially flagged the second half of last year to start development at the site, but today’s announcement confirms it is on track with its new schedule.

It has a mine gate purchase agreement with Mineral Resources, which will develop the mine and road haulage operations to export facilities at Port Hedland.

Managing director Alwyn Vorster said starting construction on Iron Valley was a milestone in the growth of Iron Ore Holdings.

“We are pleased that all the primary approvals are now in place allowing Mineral Resources to commence construction at Iron Valley,” Mr Vorster said.

“With an accomplished project development partner such as Mineral Resources we are confident shipments will commence and mine gate payments to Iron Ore Holdings will occur within the second half of the 2014 calendar year.”

Iron Valley has a JORC probable ore reserve of 134.7 million tones at 58.5 per cent iron.

Mineral Resources, which will undertake all the capital and operating costs expects for Iron Valley, expects first production by the middle of this year.

Iron Ore Holdings recently took a step forward with its major project, Buckland, when it received environmental approval for its Bungaroo South mine last month.

It is still in discussions with potential development partners for the $800 million Buckland project.