Hong Kong-based major iron ore trading company CITIC Pacific has officially launched its Australian subsidiary CITIC Pacific Mining, which will be responsible for the $5.2 billion iron ore project planned at Cape Preston, Western Australia.
The project in question is planned to be the largest magnetite mining project in Australia. With an expected mine life of a minimum 25 years, the project is expected to yield two billion mt of magnetite ore every year, with 27.6 million mt of high-grade pellet and concentrate exports annually.
The project, the construction work for which is to begin in 2008, includes a magnetite concentrator, pellet plant, slurry pipeline, port facilities, a power station and a village for workers.
Furthermore, CITIC will also construct a fleet of ships for the transport of iron ore from the mine.
CITIC Pacific Mining will have to obtain the required approvals from the Western Australian government for the project.