Australia-based Mount Gibson Iron has announced that its Iron Hill iron ore mine development was approved by the Western Australia’s Minister for the Environment.
The iron ore mine is located in the mid west region of the state.
As the company has procured all the regulatory approvals, Mount Gibson plans to advance with the development of the mine to commence production from the first half of next year.
Mount Gibson chief executive officer Jim Beyer said: “We welcome this important environmental approval of the Iron Hill mine, which takes us one step closer to commencing mine development in early 2017.”
Mount Gibson claims that Iron Hill is a low-capital cost production extension in its mid-west business where development capital costs is expected to be around $2-$3m.
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As the mine is located within 3km of the recently exhausted Extension Hill open pit, the company can leverage existing mine facilities and logistics reducing the cost further.
The company expects that all-in cash costs would be consistent with Extension Hill project.
Iron Hill hosts a total indicated and inferred mineral resources of 8.8 million tonnes grading 58.3% Fe.
Mount Gibson anticipates iron ore sales of nearly 2.8 to 3.1 million tonnes in this financial year that includes a mix of run-of-mine material from the Extension Hill and Iron Hill deposits.
The sale expectation also comprises opportunistic sales from existing low grade stockpiles.
Image: A iron ore mine in Western Australia. Photo: Courtesy of Calistemon.