On December 7, Australian iron ore development company BC Iron Limited announced that the Nullagine iron ore joint venture project (JV) in the Pilbara region of Western Australia, equally owned by BC Iron Limited and Australian miner Fortescue Metals Group (Fortescue), commenced mining at the Outcamp deposit in November.
According to a company release, mining first started with one surface mining operation in early November, adding the second surface mining operation in late November. When these operations reach full capacity they will mine up to 9,000 mt per day on a single shift basis.
The joint venture's Striker crushing and screening plant is expected to be commissioned before December 13. Haulage will commence before the same date and 30,000 mt of ore is expected to be delivered to the stockpile area at the Ore Processing Facility at Christmas Creek in mid-to-late December on public roads. Iron ore will then be loaded on to Fortescue trains to be delivered Fortescue's port facilities in Port Hedland.
The JV expects to ship 60,000 mt during January 2011, remaining on track to ship one million mt of iron ore by June 30, 2011, reaching an annual production rate of three million metric tons and shipment of one million metric tons by June 30, 2011.
In late January, the JV will commence haulage down the private haul road which is still under construction and will be completed in March 2011.