GINDALBIE Metals' $1.8 billion Karar iron ore project passed a major hurdle this week when it secured conditional approval from the Enviromental Protection Authority.
Gindalbie is still seeking approval from the Foreign Investment Review oard over a $162 million share placement to Ansteel, but CEO Garret Dixon said the EPA approval gave the company reason to be optimistic.
"A positive recommendation from the EPA is one of the major approvals process as "embarrassing", was buoyed by the news.
"At a time when many resource projects in Western Australia are being closed, cancelled or cut back, it is very pleasing to be announcing a positive milestone for a project in the Mid West," he said.
"With a life of over 50 years, the Karara Project will generate over 600 new Mid West jobs, more than 1500 jobs during the construction phase, an annual export revenue of around one billion dollars and some $630 million in capital contributions to upgrade regional infrastructure."
The president of Gindalbie's joint venture partner Ansteel, which will own 50 per cent of Karara, was in Perth recently to discuss the delays in the State Government's enviromental approvals with Premier Colin Barnett.
Delays in Karara's EPA approvals are believed to have spanned more than three years.
Gindalbie announced earlier this year that it planned to start work on a construction camp for Karara employees but after not gaining the expected EPA approvals in January, works had since been put on hold.
Mr Dixon said the EPA approval would give the company permission to build on-site at the project, east of Morawa, by the end of the year.
"We did as much of the associated work as possible while we waited," he said.
"We are still engineering design work. We are finalising and procuring all long-lead items and we are waiting to buy the other items.
"We are also negotiating and finanilising agreements with the rail companies, the Geraldton Port Authority and power companies."
Gindalbie said it could start producing hematite iron ore from Karara by 2010 and magnetite ore by 2011 if all other approvals were met on time.
The EPA approved the development of the Karara magnetite and Blue Hills ore bodies but asked that one deposit be included in the government's conservation area.
The EPA report will be open for public comment on May 12.
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