CITY of Geraldton chief executive officer Rob Jefferies has welcomed Mount Gibson Iron Limited’s commencement of mining operations at the Tallering Peak high-grade hematite ore mine, which began last week.
Mt Gibson Iron Ltd, which listed via the shell of the failed Whittakers timber group in 2001, was carrying the hopes of Geraldton after it was able to secure bankrupt Kingstream Steel’s high-grade ore deposits at Tallering Peak.
The deal also freed Mt Morgan from a previous State agreement, that all ore extracted from the deposits was to be supplied to an integrated steel mill proposed for Oakajee, north of Geraldton.
Since the termination of the agreement Mt Gibson Iron has pre-sold the mine’s ore to Swiss metals giant Glencore International (350,000tpa), a subsidiary of Stemcor (600,000tpa) and Prosperity Minerals (550,000tpa).
Mr Jefferies said the mine would provide up to 50 jobs in the region.
Ore is expected to begin filling Mt Gibson’s new storage facility at the port next January and the first shipment will depart shortly after.
Mount Gibson Iron Limited managing director Brian Johnson said Tallering Peak’s mine life was anticipated at eight to 10 years.
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