CITIC Pacific (CITIC) is planning to develop a second 1 billion tonne project at Balmoral, in the Pilbara region of Western Australia.
The company is currently drafting agreements for the project which will have to be approved by CITIC shareholders and the Treasurer of Australia.
The second project increases planned export production for CITIC to 24 Mtpa from the Central Block of the Balmoral Project, which is adjacent to Australasian Resources Balmoral South Project.
In April 2006, CITIC signed a deal with Mineralogy for the initial right to mine one billion tonnes of magnetite iron ore from the Central Block of the Balmoral Project, with options for an additional five billion tonnes.
Under its agreement with Mineralogy, CITIC will develop a port at Cape Preston and other related infrastructure facilities, which Australasian will have access to on a capital and operating shared cost basis.