The already tenuous Geraldton Iron Ore Alliance has been further strained by an announcement from alliance partner Gindalbie Metals Ltd stating the company's intention to use Geraldton Port, rather than the proposed new port at Oakajee, 25km to the north.
The decision was made following a review of the company's base feasibility study, and is justified in an announcement to the stock exchange as providing maximum certainty for the company's fast tracking of its development and shipment plans.
According to the announcement Gindalbie, which is developing the two stage Karara iron ore project in a joint venture with Chinese companies Anshan Iron and Steel Group Corporation, is working closely with the Geraldton Port Authority to facilitate the necessary port upgrades to meet its 8 million tonne per annum magnetite project.
The news comes one week after Murchison Metals Ltd sparked concerns about pre-emption of proper planning protocols when it announced the establishment of a consortium develop the Oakajee site, at an estimated $1.6 billion, without the involvement of other alliance partners.
The news leaves only two members of the alliance, Murchison and Midwest Corporation Ltd, still planning to use the Oakajee site, with Gindalbie, Mt Gibson Iron in favour of Geraldton and Golden West Resources yet to announce a decision.
In an interview with the WA Business News last week, Planning and Infrastructure minister Alannah MacTiernan said the government would look at throwing open the development of new infrastructure at the Oakajee site to an expressions of interest process, rather than allow the alliance to manage it.
"That is likely, particularly when we see that different players seem to be going in different directions," she said.
In other news from the area, Sydney based exploration and development company Jupiter Mines Ltd, with tenaments on the Mt Mason, Mt Ida and Mt Hope projects in the Pilbara, has announced the cessation of its planned joint venture with Sinosteel Australia Ltd, following the expiry of Sinosteel's negotiating right on July 1.
