Located 200km east of Geraldton in Western Australia, the Karara Project is managed by Karara Mining Limited (KML), a Joint Venture between Chinese steel producer Ansteel (52%) and Gindalbie Metals (48%).
The Karara Project is a large scale integrated mining and infrastructure project comprising a substantial, long-life magnetite concentrate operation, initially producing +8Mtpa, with the potential for expansion to +30Mtpa for more than 30 years, supplemented by a small-scale hematite operation.
The magnetite operation is underpinned by a world-class magnetite orebody with scale, quality, consistency and an extremely low waste-to-ore stripping ratio. Magnetite ore is mined and concentrated to produce a high-grade premium concentrate keenly sought by Chinese steel makers.
Karara has invested more than A$1 billion in new common-use infrastructure in the Mid-West region, including an 85km rail line, a dedicated 16Mtpa export facility in Geraldton Port, a 330kV power line, and a 140km water pipeline.
The first shipment of hematite product from Karara occurred in March 2011, and the major magnetite project made its first shipment in January 2013.
Although Gindalbie retains its investment in the Karara Project, based on current price forecasts and KML’s very significant gearing levels, the Company does not currently anticipate that the Karara Project will deliver a positive financial return to Gindalbie’s shareholders in the foreseeable future. Gindalbie also retains exposure to the Project via parent company guarantees provided to the Karara Project, primarily during the commissioning phase. In November 2015, Gindalbie’s shareholders voted to no longer guarantee these loans. Whilst Ansteel maintains operations at Karara, there will be no call on these guarantees.
Karara Key Milestones
|August 2007||Bankable Feasibility Study Completed|
|September 2007||Joint Venture Development Agreement Signed|
|November 2007||Decision to Mine|
|October 2009||Environmental Approval Received|
|November 2009||Construction Commenced|
|April 2010||US$1.2 billion Project Loan signed|
|March 2011||First Shipment of DSO|
|January 2013||First shipment of magnetite concentrate|
|April 2013||Karara Project officially opened|
For all other information on the Karara Project visit http://www.kararamining.com.au/