April 11th, 2012

New Chairman appointed to lead Magnetite Network

MEDIA RELEASE

2 April  2012

The Magnetite Network has today appointed David Richardson to the role of Chairman as Bill Mackenzie steps down after an extensive time in the role.

“David’s appointment is absolutely welcomed given that he is the Chief Financial Officer at Gindalbie Metals – joint owner of the flagship Karara project in the MidWest regionwith AnSteel that is due to commence production of magnetite later this year. David was a member of the Resource Tax Implementation Group that advised the Federal Treasury on drafting the MRRT legislation. There are so many complex tax issues facing the magnetite industry now” said Executive Director Megan Anwyl.

David said “Our key focus right now is continuing to urge the Federal Government to support the emerging magnetite industry with greater compensation through its carbon pricing scheme to safeguard regional jobs growth across Australia. Currently the Jobs and Competitiveness Program JCP assistance favours existing projects. WA projects have unique characteristics when compared with the existing projects and need to be given some certainty that there will be equity in provision of JCP assistance. “For that reason we are pursuing a supplementary allocation as has been provided to the LNG industry” he said.

“MagNet supports proper compensation for the existing projects of Grange Resources and OneSteel but is completely dismayed that the Gillard Government does not choose to offer equity to this emerging industry which is brand new for Western Australia.”

David also said “Existing producers are not really representative of the future of the magnetite industry, as typified by the $6 billion Sino Iron (Pilbara) and $2.6 billion Karara (MidWest) projects.”

“The government still appears oblivious to the perverse outcome of penalising a lower global emissions industry.  We have sought continually to work constructively to develop a solution to this challenge.”

Past ChairmanBill Mackenzieis Managing Director of the Asia Iron Group of companies in Australia.

David said “Our past Chairman Bill Mackenzie has tirelessly worked to demonstrate that our fledgling industry is poised to deliver both massive employment and global carbon emissions savings and we thank him for all of his hard work.”