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Gindalbie Metals Limited (GBG ) is pleased to announce the award of a further major construction contract for the Karara Iron Ore Project in Western Australia. The Joint Venture company, Karara Mining Limited (KML), has awarded a staged earthworks and concrete construction contract, with a total value of $120 million, to the ASX-listed specialist civil and mining contractor, NRW Holdings Limited (NWH). The earthworks and concrete package encompasses most of the preliminary construction work upon which the concentrator will be built. As well as site earthworks and concrete foundations, the contract includes construction of site drains, site roads, a retention pond and the all-weather airstrip.

The contract has a 14-month duration and will involve between 400-500 NRW personnel on site. The total earthworks and concrete package will involve the pouring of more than 40,000m3 of concrete, for which Boral has recently installed a special-purpose batching plant on site to ensure a steady and reliable source of concrete throughout the project construction period. Originally established in Western Australia’s Eastern Goldfields in 1994 as a privately owned civil constructing and general plant hire firm, NRW has grown to become one of Australia’s leading diversified suppliers to the Mining and Resources Sector. NRW listed on the Australian Securities Exchange in 2007 and today counts global resource giants such as BHP Billiton, Rio Tinto and Fortescue Metals Group amongst its key client base. The award of the earthworks contract follows the award in December 2009 of a $70 million contract for construction of the main camp and accommodation village for the Karara Project to Western Australian company Doric Constructions (Australia) Pty Ltd.

“This awarding of this construction package is another step forward for the Karara Project. Importantly, the early contractor engagement process implemented for the project is starting to show dividends with the work being well tendered by a select number of experienced contractors. Following an extensive process we are very pleased to announce the award of this major contract for the Karara Project to another Western Australian company,” said Gindalbie’s Managing Director, Mr Garret Dixon. “The earthworks package is one of the key construction packages for the Project and involves a major logistical effort. We are looking forward to working closely with the management of NRW Holdings in delivering this major contract.” Commenting on the contract award, NRW’s Managing Director Civil & Mining, Mr Willie Rooney said: “The award of this contract is a tremendous step forward in the diversification of the NRW skill base with the significant concrete component and, represents the opportunity to build a strong relationship with Gindalbie and Ansteel for future works.” Mr. Rooney went on to note that “it was particularly gratifying to be part of a world class project in the emerging Mid West region of Western Australia.”

Gindalbie is well advanced towards achieving its vision of becoming a leading independent Australian iron ore company with a diversified portfolio of magnetite and hematite production assets, located in the Mid West region of Western Australia. The initial focus of Gindalbie’s growth strategy is the Karara Iron Ore Project, located 225km east of Geraldton, where it will deliver initial production of Direct Shipping Ore (DSO) hematite in the first half of 2011 to be followed by production of high grade magnetite concentrate and blast furnace quality pellets in the second half of 2011.  Ansteel is currently China’s second-largest steel producer and the biggest iron ore miner. It is the major producer in the north- east region of China, with crude steel production of 35 million tonnes and plans to increase output to approximately 50Mtpa.

www.gindalbie.com.au