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Gindalbie is developing Karara through a 50:50 Joint Venture with Chinese steel producer, AnSteel.
A wide-ranging Joint Venture Development Agreement was signed in September 2007, followed by a Decision to Mine in November 2007. An Equity Subscription Agreement outlining terms for Ansteel’s involvement in the Joint Venture was finalised in early 2008. The Karara Iron Ore Project involves an integrated development of the world-class magnetite deposit at Karara to produce both high grade magnetite concentrate on site and blast furnace quality pellets in north-eastern China. Karara is a world-class orebody in terms of its scale, quality, consistency and extremely low waste: ore stripping ratio, which will result in relatively low mining costs. Key Project Metrics • JORC resource – 2,518Mt @ 34.1%Fe (Inclusive of 977.5Mt @ 36.5%Fe JORC Reserve) • Estimated contained concentrate 1,027Mt @ 68.6% • Waste: ore stripping ratio – 0.38: 1 • 8Mtpa initial production of high grade magnetite concentrate • 4Mtpa pellet production at a new plant in China, also in joint venture with AnSteel • 60-year mine life at initial 8Mtpa production rate • Capacity to expand production to +30Mtpa for more than 30 years Project Scope Gindalbie announced the results of a positive Bankable Feasibility Study on the magnetite phase of Karara in September 2007, confirming the economic and technical viability of the project. The BFS contemplates: • a conventional 20Mtpa open pit mining operation; • production of 8Mtpa of magnetite concentrate on site at Karara; • transportation of magnetite concentrate to the Port of Geraldton using rail as the preferred product transport mode, to accommodate future expansion; • production of 4Mtpa of blast furnace quality pellets at new JV Pellet Plant at Yingkou Port, north-eastern China; • off-take for magnetite concentrate and pellets at Ansteel’s new 6.5Mtpa Bayuquan steel mill at Yingkou Port; • First production of magnetite concentrate is scheduled to commence end-2011. Hematite Production The Karara Iron Ore Project incorporates numerous Direct Shipping Ore hematite deposits. The operation commenced in late 2010, and is expected to ramp up to an intial production level of up to 2Mtpa in 2012. Karara Expansion The known resources at Karara are sufficient to support production of +30Mtpa for more than 30 years. Gindalbie and AnSteel remain committed to the future expansion of Karara well beyond its start-up capacity and as such, much of the on-site and associated infrastructure is being designed and built to accommodate production levels well in excess of 8Mtpa. More information, click here. |
