Mount Gibson Iron Limited (Mount Gibson) was pleased to announce Board approval to redevelop and restart production from the high grade Main Pit iron ore deposit at its Koolan Island mine in Western Australia, after a feasibility study confirmed compelling economics for the Project.
Extensive technical evaluation carried out over the last two years, including detailed design and multiple peer reviews by independent engineering experts, has confirmed a safe and viable design and construction method to rebuild the Main Pit seawall, which is required to dewater the pit and recommence production from the Main Pit Deposit. Seawall construction, pit dewatering and all other activities associated with restarting production are anticipated to take approximately 24 months to complete with Mount Gibson targeting first ore sales in early 2019.
Mount Gibson Chief Executive Officer Jim Beyer said:
“After two years of extensive work to identify and confirm a safe and effective design and construction method for rebuilding the Main Pit seawall at Koolan Island, it is extremely pleasing to commence construction on what is undoubtedly one of the world’s premier and most compelling high grade iron ore investment opportunities. Coming shortly after extending the life of our Mid West operations, the redevelopment of Koolan Island also re-establishes Mount Gibson’s status as one of Australia’s premier high-grade producers at a time of rapidly growing demand for premium quality iron ore products. Importantly, it also provides a long term platform for further value creation. Our substantial cash reserves and cashflow from existing operations give us the capacity to undertake this investment without any need to take on debt for the project and still pursue other attractive opportunities which may arise in the months and years ahead.”