Iron ore miner BC Iron Ltd
(ASX:BCI) says it is poised for production following the grant of a mining lease for the Nullagine Iron Ore Joint Venture with Fortescue Metals Group Ltd
(ASX:FMG).
The miner says the West Australian Department of Mines and Petroleum has formally granted the mining lease for the 50/50 joint venture between the two miners in Western Australia’s east Pilbara.
BC iron says it will commence mining at Nullagine later this year, and remains on track to achieve its targets of first ore on ship during December 2010, a production rate of 3 million tonnes per annum and the shipment of 1 million tonnes by June 30, 2011.
BC Iron says development of the Nullagine Iron Ore Joint Venture is progressing well, with major contracts already awarded, including the recent award of key haul road construction and mining and crushing contracts.
Managing director Mike Young says the grant of the mining lease is another major milestone for the company on its pathway to mining and production and its first iron ore exports later this year.
It also comes hard on the heels of the recent Native Title and Pastoralist agreements and the award of the key projects contracts, and it is now full steam ahead as the company moves into the main construction and the production phase.
BC Iron posted a loss for fiscal 09.
