Calibre Global Performs Definitive Engineering Study for Koodaideri Hematite Iron Ore Mine in Western Australia

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Researched by Industrial Info Resources Australia (Perth, Australia)--Calibre Global Limited (ASX:CGH) (Perth, Australia) has been awarded the definitive engineering study (DES) contract by Rio Tinto Limited (ASX:RIO) (Perth, Australia) for the Koodaideri Iron Ore Mine and Rail project development. The final outcome of the DES is expected by June 2014. Project construction is scheduled to begin by the end of 2014, with expected completion in two years.

The $3.38 billion project is located approximately 68 miles (110 kilometers) northwest of Newman and 80 miles (130 kilometers) northeast of Tom Price in the Pilbara region of Western Australia. The project consists of an open pit mine with a dry crushing and screening processing plant, designed to produce approximately 40 million metric tons of high-quality hematite ore annually for export. The capacity of the mine eventually will expand to 70 million metric tons per year with the addition of a wet processing plant.

There are several options to transport approximately 40 million metric tons of hematite ore annually to Rio Tinto's port facilities at Dampier or Cape Lambert, which Rio Tinto Limited and Calibre Global Limited are investigating:

• Construct a train load-out facility and 26 miles (42 kilometers) of rail spur to connect with the existing southern rail corridor.
• Construct 38 miles (62 kilometers) of rail spur to link with the eastern corridor.
• Construct 170 kilometers of rail spur to link with the western corridor.
• Replace the rail spur in option one with 26 miles (42 kilometers) of overland conveyor system.

The completion of the transport infrastructure is expected to coincide with the mine's first production, which has been scheduled for the end of 2016.

Furthermore, the development of the Koodaideri Iron Ore Mine project requires the construction of a temporary accommodation camp with a capacity for 2,000 people. Upon completion of the mine project, part of the temporary accommodation camp will be used as the permanent workforce camp, with a capacity of 1,000 personnel.

Calibre Group Limited anticipates winning the engineering, procurement and construction contract for the Koodairderi Iron Ore project development. The company says the DES represents a good start in building a strong relationship with the project.

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