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New mine approved for South Australia

News Release

www.premier.sa.gov.au

Hon Tom Koutsantonis

Minister for Manufacturing, Innovation and Trade
Minister for Mineral Resources and Energy
Minister for Small Business

Saturday, 24 December 2011

South Australia’s 19th major mine has been approved with IronClad Mining Limited given the green light for its Wilcherry Hill iron ore project on the Eyre Peninsula.

Mineral Resources and Energy Minister Tom Koutsantonis said the approval would pave the way for the creation for 150 jobs and more than $340 million in investment in the region.

“This project brings the number of approved major mines in South Australia to 19 from four in 2002,” Mr Koutsantonis said.

Wilcherry Hill, about 40 kilometres north of Kimba, is just the latest addition to South Australia’s ever growing mineral resources sector.

“This announcement highlights what has been an astonishing year for mining in this state,” Mr Koutsantonis said.

“This investment from IronClad is a signal of the confidence - in the quality of our resources and the regulatory regime that manages them – that other jurisdictions in the world wish they had.

“Our Major Developments Directory shows there are $70 billion worth of mining and energy projects in the pipeline – of which Olympic Dam accounts for less than half.

“We now have a rapidly increasing mining sector that is diverse in mineral types and mineral regions – making us one of the most sort after mining destinations on the planet.

“While other economies around the world struggle with uncertainty, South Australia’s continues to power ahead on the back of the mining sector.”

“South Australia is now fulfilling what independent commentators have predicted about our future for years, we are now taking our place amongst the “Titans of Mining.”

Mining at Wilcherry Hill is targeted to commence in the first quarter of 2012 with workers either living locally or at an accommodation camp already constructed at Kimba.

Ironclad’s first stage at Wilcherry Hill involves production of 1 million tonnes per annum (Mt pa) of Direct Shipping Ore (DSO) for export to Asia in the first quarter of 2012, ramping up to 2 Mt pa in the second year.

Stage two involves an increase in production to 5Mt of iron ore concentrate, while stage three will see the exploration and development of the separate Hercules Project, 15 kilometres south east of Wilcherry Hill, which is expected to increase output of the operation to 10-12 Mt pa by 2014.

Iron ore will be loaded into containers at the mine and road hauled to port for stockpiling and export. Exisiting facilities at Lucky Bay will be initially used while IronClad develop a floating harbour which will enable cape-sized vessels of up to 150,000 tonnes to be loaded with Wilcherry Hill iron ore.

Mr Koutsantonis said the Wilcherry Hill approval came on top of expenditure on mineral exploration in South Australia growing to its highest level since the Global Financial Crisis.

“South Australia’s mining sector continues to recover supported by strong international commodity prices and the State Government’s Plan for Accelerating Exploration – PACE 2020,” Mr Koutsantonis said.

“Spending on exploration is already exceeding the Government’s new target of maintaining annual expenditure of $200 million as set out in the updated South Australian Strategic Plan.”