September 08, 2008
Western Plain Resources to start Coober Pedy iron ore mine in 2008
It is reported that a USD 110 million iron ore mine near Coober Pedy in Australia is expected to start production within a year. Western Plains Resources said it had finished a feasibility study on its Peculiar Knob mine, which showed it was both technically feasible and economically viable.
Western Plains Resources said "Subject to the timely receipt of all necessary approvals and the completion of all documentation, it believes the project can be brought into production at the rate of at least 2.7 million tonnes per annum by the fourth quarter, 2008, with exports to commence soon thereafter."
Development of the mine would include
1. A 132 person camp
2. A 3 million tonne per year ore crushing and screening plant
3. An 85 kilometers road to the Wirrida siding on the Adelaide to Darwin rail line.
Once the mine is operational, it would send about eight trains of ore to Whyalla a week. It would be loaded onto large vessels 10 kilometer offshore in the Spencer Gulf.
Mr Bob Duffin executive chairman of Western Plains Resources said the Sydney based company expected its mining lease to be granted in February next year, with its mining and rehabilitation plan to follow shortly afterwards. He said that “We think that we can be in production by the end of next year and there is a fair bit of upside. We would be spending money on the project before the mining lease is granted. Obviously we cannot start digging the hole before then, but we will commit to the design work before that.
Mr Duffin said the life of the project is estimated to be six years but it could be extended if more reserves were found or a nearby deposit at Hawks Nest is incorporated into the mining plan. He added that the company expected ore sales and mine financing agreements with the China based Focus Group to be finalized before the end of the year. He also added that the project had been put out to public consultation and had not met with any opposition so far.
