$1.8 billion Karara project

The $1.8 billion Karara iron ore project has commenced listing supply opportunities.

The $1.8 billion Karara iron ore project has commenced listing supply opportunities on the ProjectConnect website.

Located 225 km east of Geraldton the $1.8 billion Karara Iron Ore Project is being developed through a 50:50 Joint Venture between Gindalbie Metals Limited and Chinese steel producer Anshan Iron & Steel Group Corporation (AnSteel).

The project includes magnetite and hematite resources.

The magnetite resource is said to be 1.85 Bt and has an initial reserve of 522 Mt.

First production of 8Mtpa is scheduled for 2010.

A high grade concentrate will be shipped to China where a pellet plant is to be located.

The hematite resource is 27 Mt plus a 14.3 Mt reserve.

Initial production of 2 Mtpa of Direct Shipping Ore (DSO) hematite is scheduled for 2009.

Suppliers are invited to monitor ProjectConnect as additional procurement and contract packages will be listed on the website as the project progresses.

According to ProjectConnect manager David Kobelke, suppliers should ensure their company profile is up-to-date before registering interest for any opportunity on the website.

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