Venture going ahead with iron ore mine

Perth-based Venture Minerals has made a final investment decision for the restart of its Riley iron ore mine in Tasmania, with operations to begin in a week.

Venture had started mining at Riley in 2013, but suspended operations a year later due to declining iron ore prices.

The company today said it had made a positive final investment decision for Riley, prompting its decision to ramp-up screening operations that will generate early cash flow from the mine.

Full production will begin once Venture secures financing for the construction of the mine's wet processing plant.

About 100 jobs will be created from the restart, Venture said.

It comes after Venture signed port and road access agreements with TasPorts and HydroTasmania to secure a mine-to-shipping pathway for Riley.

The mine, located in Tasmania's north-west, holds a net present value of $27 million based on two years of production with operating costs of $56 per tonne of ore, according to last year's updated pre-feasibility numbers.

Managing director Andrew Radonjic said the restart was occurring in a stronger iron ore environment and would be a boost for Tasmania’s west coast economy.

“The board has given the go ahead to proceed with the dry screening operations, reaching another important milestone as the Riley mine ramps up towards full scale production,” he said.

Venture says it will soon award contracts for road haulage works and other services.

The company was trading 3 per cent higher at 1:09pm AEST to 3.2 cents.