It is reported that Tasmania may be the site of a USD 1.9 billion mineral processing and handling plant, after Western Australia’s Grange Resources took over Australian Bulk Minerals.

The USD 722 million takeover means ABM’s Port Latta iron pellet plant could be more than tripled in size. The only competition for the new pellet plant and expanded port facility is from a Malaysian alternative.

Grange Resources said that it is seriously considering the viability of having a Port Latta plant, if it is cheaper than the Malaysian alternative. The plant could see the creation of 1000 jobs in the local area.

The existing facility produces 2.3 million tonnes of pig iron pellets annually, by processing magnetite from the Savage River mine. The new pellet plant would take magnetite from the WA Southdown mine, meaning the company would need to build a new un loader at the port to take the ore from the ships to the facility.