Anshan-Gindalbie project obtains government support

The Karara Iron Ore Project in Western Australia, planned jointly by the Australian iron ore company Gindalbie Metals Ltd and major Chinese steelmaker Anshan Iron and Steel Group Corporation (Angang), has obtained Major Project Facilitation status from the Australian government. Australian Minister for Industry, Tourism and Resources, Ian Macfarlane, made the announcement today, saying the joint venture between Gindalbie and its partner, Angang, was another example of the growing trade and investment relationship between Australia and China. Thanks to the granting of the said status by the Australian authorities, the Australian government's inward investment agency will help to facilitate the approval processes and identify any governmental programs that may assist the project. The Karara Project will not only involve a significant investment in mining, processing and transportation infrastructure in Mid-West Australia, but also a joint investment by Gindalbie and Angang in a new pellet plant facility in China. The Karara Project Definitive Feasibility Study is expected to be completed by February 2007. The production is expected to begin with two million tons per annum of raw magnetite ore in early 2008, increase to eight million tons of magnetite concentrate per annum in late 2009, which would be transferred via a 225 km pipeline to the Port of Geraldton, from where it will be shipped to the Port of Yingkou in China to the new joint venture pellet facility. The joint venture agreement between Gindalbie and Angang was signed in April this year.