Gindalbie Metals Limited (GBG) is pleased to advise that more substantial progress has been made in the development of the $1.975 billion Karara Iron Ore Project, with the award of a $120 million contract to Downer EDI (DOW) for the construction of the key power transmission line .
Under the terms of the contract awarded by Karara Mining Limited, Downer EDI Engineering Power Pty Ltd will construct a 180km, 330kV power transmission line from the Karara Project to Eneabba. At Eneabba, the transmission line will connect to Western Power’s South West Interconnected Service, allowing Karara to draw power under its 15-year supply agreement with Verve Energy. Construction of the line has already commenced with Downer EDI completing the footings for more than 60 of the transmission line tower bases under an early works agreement.
Gindalbie Managing Director, Mr Garret Dixon, said Downer EDI was well placed to deliver Karara’s power transmission requirements with extensive experience in power line construction and a strong relationship with Western Power. The high voltage power line represents one of the key pieces of infrastructure investment – together with rail, water and port facilities – where additional capacity is being built into the Stage One project with a view to the potential future expansion of Karara’s production level.
Gindalbie Metals Ltd (GBG) 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. Gindalbie’s longer term growth will be propelled by the exploration and development of its extensive 1,900 sq km tenement portfolio, which includes numerous prospective magnetite and hematite exploration targets expected to deliver a long-term pipeline of growth opportunities.
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. AnSteel is considered to be one of the country’s key growth companies and has strong government support in securing new sources of long-term iron ore supply through international investment. AnSteel has developed a new integrated iron and steel making facility at Bayuquan, adjacent to the Port of Yingkou, approximately 100km south-west of its current steel making facilities in the city of Anshan. The new facility has the capacity to produce 6.5Mtpa of finished steel products. Once the Karara Project is in production, its products will be the key feed source for Bayuquan.
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