Port decision imminent: Centrex

Centrex Limited will make a decision by early-December over which of three....

  Centrex Limited will make a decision by early-December over which of three ports will export its maiden iron ore shipments from South Australia by the end of next year.Port Lincoln, Proper Bay and Whyalla are in contention to direct ship hematite ore from Centrex’s Wilgerup deposit near Lock on Eyre Peninsula. Mining is on track to commence in August next year, with first shipments from the end of 2008.Centrex Managing Director, Gerard Anderson said a prefeasibility study report by Sinclair Knight Mertz on the capital and operating costs for each of the ports, was due by the end of November.“The Board of Centrex will make an immediate decision on port choice to ensure we have a full mining and rehabilitation plan to the South Australian Government by the end of December,” Mr Anderson said.“Each of the ports has factors in their favour, but, as Wilgerup will be at least a seven to 10 year mine, we need to assess carefully the mix of road and rail options to get the ore to the coast and then either direct to ship or via barge to ships anchored further offshore.“Unlike iron ore operations in remote Western Australia, Wilgerup is significantly advantaged by having existing rail and port infrastructure nearby,” he said.“Together with considerable and ongoing interest by Australian and overseas parties in joint venturing our other iron ore projects on Eyre Peninsula, this positions Centrex to emerge as a multi-mine iron ore producer in the very near term.”Mr Anderson also said he does not see any easing in global demand for iron ore and was confident of several price rises over the next few years.The hematite pod on the northern extension of the Wilgerup ore body, 30km southeast of Lock, has a JORC reserve of 7.6 million tonnes at 59.9% Fe and will be the target of additional in fill drilling from a new program commencing next Tuesday.The mineralisation is under shallow unconsolidated sand cover, allowing Centrex to focus on a low cost, low strip ratio mining operation. Mine construction work is scheduled to commence in the coming March quarter.