Murchison Metals joins iron ore producers

West Perth-based Murchison Metals Ltd has officially become Western Australia's sixth iron ore miner, after the company commenced mining operations at its Jack Hills project this morning.

The company joins Midwest Corporation Ltd, which sent out its first shipment of iron ore to China in March this year, and established miners Portman and Mt Gibson as iron ore miners in the Mid West region.

While the Mid West has lage growth potential, miners in the region are dwarfed by the two big Pilbara producers, BHP Billiton and Rio Tinto.

Other companies currently investing in new iron ore mining projects are Fortescue Metals Group in the Pilbara and takeover target Aztec Resources in the Kimberley.

Murchison, which listed on the ASX in April last year, aims to commence ore shipments to its North Asian customers within the next few months.

As part of the commencement of mining operations, the company has completed the development of the Jack Hills airstrip and a 23km access road between the mine site and the Cue sealed road.

This first stage of the Jack Hills development will produce 1.5 million tonnes a year, with Murchison aiming to increase production to 2 million mtpa by 2008.

Stage two of the Jack Hills project involves increasing annual production of direct shipping high grade ore up to 25 mtpa, with iron ore being railed to a new port facility at Oakajee.