Centrex-WISCO JV clears way for new SA iron ore mines

Holloway said the agreement between Centrex Metals and WISCO, a unit of China’s third largest steel producer, aims to establish two, 5-million tonne a year magnetite iron ore mines on southern Eyre Peninsula.
The joint venture agreement builds on the success of Centrex Metals’ existing advanced hematite iron ore project at Wilgerup, which is being developed into a 2 million tonne a year mine 30 kilometres south east of Lock, on the central Eyre Peninsula.
“Today’s signing marks another impressive milestone for the South Australian resources sector and the regional economy of the Eyre Peninsula,” Holloway said.
“The investment commitment announced today by both parties is one of the largest by a Chinese-backed steel entity in the recent history of this State’s resources sector.
“It is testament to the fact that South Australia remains attractive to foreign investment in our mineral resources, particularly by the long-term customers of the future such as China.”
Holloway said Centrex and WISCO are also pursuing an additional joint venture to build a deep water bulk mineral commodities export port near Tumby Bay.
“There are more than 120 current exploration licences being actively explored on Eyre Peninsula, including several tenements held by Centrex,” Holloway said.
“This joint venture will allow exploration and development studies on two magnetite projects on the Eyre Peninsula to begin immediately.
“The South Australian Government hopes this investment in exploration will eventually lead to the development of new iron ore mines that are able to build on the success of the Wilgerup project.”