Australian iron ore company BC Iron Limited (BC Iron) announced on August 18 that the construction of mining infrastructure has commenced at its 50 percent-owned Nullagine Iron Ore Joint Venture with Fortescue Metals Group (FMG) located in Pilbara, Western Australia.
A BC Iron statement also announced that approvals have been received for stage one of the project from the Department of Mines and Petroleum (DMP), opening the way for the usage of public roads, haul road construction and commencement of mining in the third quarter of 2010. Full and continuous tenure was also granted from the mine site to rail head.
BC Iron remains on track for its stated targets of shipping the first ore in December 2010 and of reaching an annual production rate of firstly three million metric tons to increase to 5 million mt, with the shipment of one million metric tons by June 30, 2011.
Approvals from the DMP for Stages two and three are expected during the fourth quarter of 2010.
The JV partners have also agreed to share project revenues on an equal basis, as well as BCI's JV management fee and FMG's marketing fee.