China Metallurgical Group Corp is planning to start construction on an iron ore mine in Western Australia by mid 2012 and start operations by 2015.
The Chinese company plans to initially mine 55 million tonnes of low grade magnetite iron ore at its Cape Lambert iron ore project and then process it into a magnetite concentrate at a rate of 15 million tonnes per annum. The plans were revealed by the Australian Financial Review (AFR).
The China Metallurgical Group Corp plans to eventually boost magnetite concentrate production to about 25 million tonnes a year. As per its statement on Monday to the AFR it hopes to continue mining at Cape Lambert for about 25 years.
It also plans to build a 300 mega watt natural gas powered generator and desalination plant as part of the project development.
The Australian mining industry’s boom has been fed in no small part by the great demand for iron ore and coal coming from China.
The rapid economic growth seen by the Chinese economy has had Australian companies rushing in to meet the demand it has for both energy and raw material.