core sector communique

IMX CELEBRATES OPENING OF SA’s FIRST IRON ORE MINING DISTRICT SINCE 19TH CENTURY

 

 

South Australian Premier Mike Rann officially opened the Cairn Hill mine near Coober Pedy today.

 

This unique iron ore – copper - gold project, representing the first of the next generation of iron ore miners in South Australia in over a century, has been identified and advanced to production stage by IMX Resources Limited (ASX: IXR), an Australian-based steel feedstock and copper development company.

 

“Cairn Hill is now the cornerstone of our future core business of iron ore and steelmaking materials, and we are also looking to increase our resource base over time, either through exploration or acquisition,” said IMX Resources Chairman Johann Jacobs.

 

“We are very proud that IMX Resources is the first of the next wave of iron ore producers in South Australia. Sufficient port and rail infrastructure are the keys to delivering a sustainable iron ore industry for South Australia,” Mr Jacobs said.

 

Speaking at the official opening celebration of the Cairn Hill Mine near Coober Pedy South Australian Premier Mike Rann said:

 

“Over one hundred years ago in South Australia’s outback, our first iron ore mine at Iron Knob became an icon of the Australian steel industry.”

 

“This ore was loaded onto carts and pulled by pioneer bullock teams along hot and dusty tracks to Port Augusta, in turn creating an important part of Australia’s federation history by forging the nation’s future development in steelmaking, engineering and shipbuilding,” he said.

 

“Coober Pedy has become internationally recognized as the home of opal mining in Australia and it is pleasing to see this richly endowed mining belt give birth to a range of new commodities including copper, gold and iron ore.

 

“Today, after extensive drive by government to foster the further exploration and development of the state’s iron ore resources, this breakthrough will create new employment opportunities for the iconic Coober Pedy community while considerable economic benefits are generated for the state and Australia as a whole,” Mr Rann said.

 

The Cairn Hill mine is expected to produce at the rate of up to 1.7 million tonnes per annum (mtpa) for a period of approximately five years based on the current mine plan lodged with the SA Government (PIRSA).

 

“High-grade magnetite is being mined at Cairn Hill, before being transferred in purpose-built containers for railing to Port Adelaide for shipping to Yingkou in north-eastern China for processing into a premium concentrate,” said IMX Resources Managing Director Duncan McBain.

 

“We have created a unique partnership between business, government, traditional peoples, local communities and Chinese partners. This exciting project is on track for commencement of shipping in CYQ42010,” he said.

 

The Cairn Hill project is expected to employee approximately 156 people in South Australia, in its mining, road and rail haulage and port operations. There will also be additional local employment created from servicing the employee accommodation and messing facilities in Coober Pedy, as well as business opportunities to provide services to the mine.

 

For the mining operations, employees will be based in Coober Pedy from where they will travel to and from work daily.

 

As part of the agreement with the mining contractor, Exact Mining Services (EMS), there is provision for the employment of people from the Coober Pedy community, and employment and sub-contracts to the Antakirinja native title claimants.

 

One of the factors for IMX in selection of the mining contractor was their previous experience in setting up self sustaining aboriginal businesses in the mining services industry. Subject to final negotiations, Stony Desert Mining Services (a joint venture between EMS and the Antakirinja Matu-Yankunytjatjara Aboriginal Corporation), will be awarded a sub-contract for the maintenance of the haul road from the mine to the Rankin Dam rail siding.

 

“Importantly the project is not just about economics, the new operation will ensure environmental impacts are minimised while social and cultural benefits are maximised,” Mr McBain said.