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Federal nod for A$250m Port Spencer project

30th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The federal government has given its approval to ASX-listed Centrex Metals to develop the A$250-million Port Spencer export facility, in South Australia.

The approval covers all onshore and offshore facilities required for shipping access and the export of grain and iron-ore and also includes a desalination plant to provide process water to Centrex’s proposed magnetite iron-ore mines in the region.

The federal approval for the port completes one of the final conditions of the provisional development approval received from the South Australian government in December last year.

Road transport- and construction-related approvals are still outstanding.

The proposed port would be capable of handling up to 20-million tons a year of product, with further expansion possible, and would comprise a 500-m-long deep-water jetty, ship-loading facilities, storage areas and associated infrastructure for the export of iron-ore and grain.

The second stage of the development included the addition of the Eyre iron magnetite joint venture processing plant, located near the town of Koppio, a 40-km-long slurry pipeline and a return water pipeline to the port, dewatering facilities, a magnetite concentrate storage shed and a modular desalination plant.

Centrex said this week that a separate referral was currently in progress for the proposed Fusion magnetite mine, process plant and pipeline corridor.

The company noted that the execution of the Port Spencer project would be essential for the development of the Fusion project, or any other such significant customer.

Centrex and its Fusion joint venture partner, Wuhan Iron & Steel, in September announced the delay of the Fusion project, in line with the changing market conditions. Instead, the partners would start an exploration programme at new deposits within the Fusion tenement to allow greater mining selectivity and to reduce the estimated mine production costs.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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