Gindalbie Metals has awarded a A$70m contract to Doric Constructions for the build of the main camp at its Karara iron ore project in Australia, a joint venture with Anshan Iron and Steel Group (Ansteel).

Gindalbie and Ansteel, through their 50:50 joint venture, have commenced pre-construction activity at the Karara Iron Ore project located north-east of Perth.

Karara is one of the biggest mine developments in the region and one of only a few new magnetite projects under development in Australia.

The contract with Doric includes the development of the main camp and accommodation village at the Karara project.

Earthworks and on-site clearing are currently in progress at the project site.

The Karara ore mine contains 1.4 billion metric tonnes of recoverable reserves and over two billion tonnes of estimated total reserves.

Production at the mine, which will have an annual capacity of eight million tonnes of magnetite and two million tonnes of direct shipping ore, is expected to begin in 2011 and have a 30-year mine life.

The Karara project is expected to generate 600 direct and indirect long-term jobs and 1,500 construction jobs.

Ansteel is Gindabie’s biggest shareholder with 36.28% stake.