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Iluka mine bid

01 Dec, 2007 11:11 AM
A formal application to mine the Jacinth-Ambrosia mineral sands deposits, 200 kilometres north-west of Ceduna, has been made by Iluka Resources Ltd.

A detailed mining lease proposal was submitted to the Department of Primary Industry and Resources SA (PIRSA) last Thursday.

Approval for an all-weather haulage road, to be built from the mine site - in the Yellabinna and Nullarbor Regional Reserves, about halfway between Yalata and Oldea - out to the Eyre Highway, will be sought from Planning SA as part of the proposal.

People who have a view on Iluka's proposal to mine zircon at Jacinth-Ambrosia, have until January 4 to lodge written submissions with PIRSA.

Issues raised in those submissions will be addressed by Iluka in a formal response document. PIRSA and other government agencies will then undertake a detailed environmental impact and risk assessment of the project before the State Government makes a final decision on the mining tenements.

Iluka's general manager investor relations and corporate affairs, Dr Robert Porter, said that during the proposed construction phase - from Iluka board approval expected mid-next year to the proposed production start-up in 2010 - between 220 and 250 people would be employed on the project.

Once operating at capacity, the mine would employ 110 people and have a proposed initial life span of 10 years on the Jacinth-Ambrosia deposits, Dr Porter said.

He confirmed comments made by company representative Hans Umlauff to the Regional Development SA conference in Port Lincoln - reported in the West Coast Sentinel last week - that the company would look to employ indigenous workers and farmers.

"We are planning to source as much of our employment requirement as possible from the local area," Dr Porter said.

However, a "fly in-fly out" link between Adelaide and the mine site would also be established for specialist personnel who could not be sourced locally, he said.

The mineral sands would be mined in a "shallow open cut" operation, the zircon extracted and put through a "wet concentration plant" - using highly saline underground water from a source about 20 kilometres further west - on site, Dr Porter said.

The heavy mineral concentrate would then be trucked out to the Port of Thevenard and shipped to Iluka's plant at Geraldton in WA for final processing.

Dr Porter said the life of the mine and whether a final processing plant would eventually be established at Ceduna as the company's mineral sands operations in WA wound back, was dependent on a number of factors.

These include the development of the zircon rich Tripitaka deposit about 30 kilometres north of Bookabie and 100 kilometres to the east of the proposed Jacinth-Ambrosia mine - Iluka has a 51 per cent interest in a joint project with Adelaide Resources Ltd - and the redevelopment of the Port of Thevenard and the channel deepening, he said.

As well, continued exploration of the company's extensive mining tenements - they stretch from east of Wirrulla north-east across the Trans Australia Rail Line almost to the WA border west of Oak Valley - may uncover further deposits which could extend the life of the mine and make a processing plant at Ceduna more feasible.

"Ideally, we would like to see this project develop further with a life of 30, 40 or 50 years," Dr Porter said.

Mineral Resources Development Minister, Paul Holloway, announcing the formal applications, said Iluka's project will contribute about 3-5 per cent of the state's strategic plan target of increasing mineral production to $3 billion by 2014. Investment by Iluka will also contribute about $471 million to the state's economy, he said.

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