Sinosteel to start digging again
/When it shut down last year, it threw a spanner in the "Oakajee" works. But news that Sinosteel plans to recommence work later this year at Blue Hills has the potential to be very good news for those hoping to profit from a prosperous mining sector.
The mine is only a 1.4Mt per year mine with a three year life expectance, which is chicken feed compared to what is being mined in the Pilbara. But getting the Chinese owned company interested in the region is a good step forward if Western Australians hope to interest the Chinese in financially backing the still hopeful Oakajee Port.
Full press release below from Ian Blayney.
GERALDTON MLA Ian Blayney said today he welcomed news that Sinosteel Midwest Corporation’s (SMC’s) Blue Hills hematite project would re-commence operations in the second half of this year.
The project was deferred last October 2012 but SMC’s General Manager Phil Allsopp said the project was now firmly back on the table.
An SMC Value Improvement Study conducted late last year projected the ability to deliver significant improved costs and an optimised operational approach.
“This is definitely a good news story for Geraldton and the Mid West’s iron-ore industry,” Mr Blayney said.
SMC announced the importance of engaging major contract partners - MACA (mining and processing) and B&J Catalano (road haulage) – in getting the project back on.
The Blue Hills Project is planned to produce approximately 1.4Mt per annum, with a mine life of approximately 3 years.
SMC’s Blue Hills consists of two adjoining iron ore tenements at Mungada in the Perenjori Shire containing an estimated ore reserve of 4.3Mt.
Ore will be mined, crushed and screened on site and hauled via a northern road route to the Port of Geraldton where SMC has existing storage and loading facilities.
