Western Desert Resources Advances with Roper Bar Hematite Iron Ore Project

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Researched by Industrial Info Resources Australia (Perth, Australia)--Western Desert Resources (ASX:WDR) is advancing with its Roper Bar Hematite Iron Ore Project in the Northern Territory for planned production by end of 2013. The proposed development is located about 220 kilometres east of the remote town of Mataranka, Northern Territory, and plans are to produce an estimated 3 million tons per year (T/yr) of direct shipping ore (DSO). The early site-works have been completed, and Western Desert is confident of shipping its first ore by the end of October 2013.

The $130 million capital expenditure involves a basic crushing and grinding plant and a 150-man accommodation camp for the mine's operating staff. A 75-kilometre slurry pipeline was also considered to transport the ore from the mine site to the Maria Island iron ore terminal. However, a decision was made to transport the ore by a haulage road to Xstrata's Bing Bong Port. The slurry pipeline was put on hold following opposition from traditional land owners. Western Desert plans to expand the Rope Bar mining operations by another 3 million T/yr by 2018. The slurry pipeline addition will be investigated again, along with the expansion.

The environmental approval for the project was received in December 2012, and the company is in the process of selecting a mining contractor. The construction of the 165-kilometre private haulage road is under way, and several bridges already have been completed. Western Desert has selected Wagners Transport (Northern Territory) as the haulage contractor for the ore transport. Western Desert is also in ongoing discussions with possible investors and hopes to finalize the project in the current financial year.

The project is planning to offer numerous benefits to the Northern Territory economy, such as royalties, employment, indigenous participation and other business opportunities. "We look forward to first export of our DSO in October this year at an annual rate of 3 metric tons per annum," said Norm Gardner, the managing director for Western Desert Resources.

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