Production on schedule for $10b Pilbara project

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 23 Sep 2013   Posted by admin


THE Roy Hill iron ore project is on schedule to start production next year and begin exporting in the third quarter 2015, according to project director Sanjiv Manchanda.
Business News reported that although the project still needed to secure its debt funding, Mr Manchanda had declined to elaborate; instead outlining the progress achieved on the $10 billion project.
“The centre line for the rail has been cleared, dredging has been completed at Port Hedland, and the dedicated airstrip at the mine site – which is the longest in the Pilbara and capable of handling 737 aircraft – is complete and operational,” he said.
Mr Manchanda said the four rail camps of 300 rooms each were operational, and the 2000-room mine village was progressing well with 900 rooms available for use, while the 1200-room village at South Hedland had another 900 rooms complete.
Outlining plans for the future, Mr Manchanda said that major site works at Roy Hill would begin in the December quarter.
“We will commence mining, which will start with pre-stripping the waste, next year,” he said.
“We remain on track for first ore on ship planned for third quarter 2015.” The project involves a 55 million tonnes per annum iron ore mine, a rail link to Port Hedland and new wharfs and support infrastructure.
While still seeking $7 billion in debt funding for the project, equity investors Hancock Prospecting, POSCO and Marubeni were providing funding to enable work to continue.
Meanwhile, a joint venture between Forge Group and Spanish contractor Duro Felguera was awarded a $1.5 billion contract for construction of the processing facility at Roy Hill.
Forge stated that site construction would begin in December and was expected to be completed by September 2015.