April 9th, 2013

Magnetite iron ore miners offered concessions

Tuesday, 9 April 2013

By Kathryn Diss, ABC News

The Premier Colin Barnett has announced he will give magnetite iron ore miners a royalty concession in a bid to get projects off the ground.

Mr Barnett made the announcement at the official opening of Gindalbie’s Karara mine east of Geraldton, in what is a joint venture with Chinese company Ansteel.

The Premier says miners will receive a rebate of up to 50 per cent on royalties paid during the first 12 months of magnetite production in a policy.

Mr Barnett says the concession will send a positive message to Chinese investors.

“It’s to recognise the scale of investment here, that’s what we’ve been striving for in Western Australia for a long time,” he said.

“And, also give a very clear message to the Chinese government and Chinese state owned enterprises such as Ansteel that their investment is welcome in Western Australia and the State Government is supportive.”

The policy will apply for three years.

The Karara mine employed 2,500 people during peak construction and will provide ongoing jobs for 500 people.

Gindalbie chairman George Jones says for years people have dreamed of unlocking the low grade magnetite iron ore of the Mid West and he is proud the Karara mine has made that a reality.

He says the royalty concession is a helpful and necessary step to get magnetite projects into production, particularly when markets are down.

“It’s the equity markets and share markets that change their attitude to resources; at the moment we’re out of favour but that will change hopefully in the next year or so,” he said.

Gindalbie made its maiden shipment of iron ore from Geraldton in January, representing the first ever commercial shipment of magnetite iron ore from WA.

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