It is reported that Sinosteel Midwest Corporation celebrated first shipment of iron ore. It was a monumental day for Sinosteel Midwest with the celebrations coinciding with the announcement of the completion of the Bankable Feasibility Study for its flagship Direct Shipping Ore project at Weld Range.
MV Hai Lang will depart with 60,000 tonnes of ore mined from the Koolanooka Blue Hills project from Geraldton Port to China steel mills.
The milestone is a significant step forward for the developing Mid West iron ore province and signals the dawn of a new era for the Koolanooka mine, which was first discovered nearly 50 years ago.
Mr Tony Cheng MD of Sinosteel Midwest said that the company’s inaugural shipment is a culmination of USD 30 million invested in the region. He said that “Going forward, the Koolanooka and Blue Hills mines are expected to provide about USD 25 million worth of royalties for Western Australia, and revenues of USD 350 million throughout the life of the mine.”
He said that “This is just the beginning of our long-term commitment to the region and we look forward to a long and prosperous future in partnership with the Mid West and the State of Western Australia. Bringing the Koolanooka project through planning, approvals and development to its first shipment has paved the way for Sinosteel Midwest’s major project at Weld Range and ensures we can move forward with confidence.”
The timing of Sinosteel Midwest’s first shipment coincides with the announcement of the completion of the Bankable Feasibility Study for the Weld Range project. The BFS is a culmination of over USD 140 million of studies and drilling over the past three years.
Weld Range, located 65km south-west of Meekatharra and 50 kilometer north-west of Cue in Western Australia, will be a major resources project for the region and is expected to produce 15 million tonnes of iron ore per annum over 15 years, which equates to revenue of approximately USD 22 billion. The project is a cornerstone customer for the Oakajee port and rail infrastructure.
