EPA approval for Karara Project

The Western Australian Environmental Protection Authority (EPA) has released its reports for the Gindalbie Metals owned Karara Iron Ore Project.

The Western Australian Environmental Protection Authority (EPA) has released its Reports for the Gindalbie Metals owned Karara Iron Ore Project, recommending approval for the resources development.

The EPA reports pave the way for the Karara Project, which is located 225 km east of Geraldton in WA’s Mid West region, to commence construction later this year.

The Karara Project is being developed through a 50:50 Joint Venture with AnSteel.

According to Gindalbie, the report has concluded that with the implementation of Ministerial Conditions the development of the multi-billion tonne Karara Project could be undertaken.

“While these conditions are under review, the majority of the conditions are consistent with a sustainable approach to mining and development,” a company statement said.

“Management plans and actions to address these are in an advanced stage of development.”

According to the company, the EPA recommendation provides encouragement that the company will be able to complete the approvals process in the coming months to allow the on-site construction in the second half of 2009.

The report suggests the Government will declare a conservation area based around Mungada Ridge.

“The Joint Venture partners have previously withdrawn from assessment the hematite orebodies located on the Mungada Ridge, while continuing assessments of the nearby Blue Hills North and Terapod iron orebodies and the main Karara magnetite deposit,” the company said.

“While the EPA report recommends the approval of the Karara magnetite and Blue Hills North orebodies, it recommends the Terapod deposit should be included in the Government’s conservation area.

“It should be noted that during discussions with various Government departments in the review process, the Joint Venture partners advised they were prepared to consider relinquishment of the tenement covering the Mungada Ridge, strictly on the basis that Karara, Blue Hills North, Terapod and all associated infrastructure were approved.”

The Joint Venture partners are currently reviewing this issue, the findings of the EPA and the conditions attached to the report to determine whether they will appeal any conditions.

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