Mt Gibson Iron has received approval for development of the Iron Hill iron ore mine in Western Australia’s Mid-West region.
The mine is approximately 3km south of the company’s recently depleted Extension Hill open pit, allowing it to use the existing processing facilities, workshops, camp and transport infrastructure.
It will also use the Extension Hill workforce of around 160 employees and contractors.
Mount Gibson CEO Jim Beyer said the company was “very pleased” to gain the approvals after they had applied two years ago.
“Obtaining these approvals in a large part reflects our proven record of, and ongoing commitment to, responsible resources development in the state’s Mid-West and Kimberley regions,” he said.
“We now look forward to rapidly developing this attractive high value, low-capital production opportunity, thereby extending the life of our Mid-West business.
“It is also very pleasing to be able to deliver additional value for our shareholders while continuing to provide much needed economic activity in the Mid-West region by way of direct employment and the engagement of local business.”
Iron Hill is expected to provide around 0.4-0.5 million wet metric tonnes (Mwmt) of iron ore.
It has a total mineral resource of 8.8 million tonnes at 58.3 per cent iron.
Sales of the first product is slated for May 2017, with total life-of-mine sales of 5.5-6 Mwmt expected through to the end of 2018 when production is expected to finish.