$4.5bn iron ore project in SA given the green light

Iron Road’s $4.5 billion Central Eyre iron ore project (CEIP) has received two key approvals from the South Australian Government, paving the way for the project’s development which is expected to create thousands of jobs.

The State Government has granted Iron Road the mining lease as well as development approval for the CEIP. Central Eyre is set to become Australia’s largest magnetite mine once it is completed, with an estimated 21.5 million tonnes per annum production.

This multi-billion dollar project is backed by Iron Road’s strategic partner, China Railway Group Limited (CREC).

“The approvals we have received are a direct recognition by the South Australian Government of these and other significant direct benefits for the State.

“We are now looking forward to the next stage of our development journey which will include further engagement with stakeholders, preparing our secondary approval applications, reaching a Final Investment Decision together with CREC and ultimately achieving financial close,” said Iron Road Managing Director Andrew Stocks.

The project will include the construction of a deep water port at Cape Hardy – which can also be used to export other goods for South Australia – and a 145-kilometre rail link.

CEIP is expected to generate up to 2,000 construction jobs and 700 operational jobs for more than a 25-year mine life.

“The CEIP will employ approximately 1,950 people during construction and 700 during operations, all located on the Eyre Peninsula, in addition to the workforce required in the Adelaide head office,” Mr Stocks said.

Iron Road is expecting to receive the remaining primary government approval from the Commonwealth environmental legislation within weeks. The company is also seeking to secure the remaining funding for CEIP by December 2017.

Development map (source: Iron Road)

According to Premier Jay Weatherill, various environmental, social and economic impacts on local residents and businesses have been considered after a rigorous development assessment process.

The assessment that the project underwent resulted to 127 conditions which Iron Road will have to meet in order to proceed with the development. Conditions will include resolution of land access; continuous monitoring and public reporting of dust emissions and noise; and taking preventive measures for loss of agricultural productivity from surrounding properties.

“If Iron Road meet the conditions of their approval this project will create thousands of jobs and have a significant, lasting impact on our economy.

“Connecting the Eyre Peninsula to the world’s markets through a modern rail link and deep water port that can be used by other businesses will also enable this important region of our state to grow,” the Premier said.

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Source: Australian Mining, ABC News and Iron Road