Attention:  News Editor/Chief of Staff

MEDIA RELEASE

Tuesday, 15 July 2008

The Independent Chairman of the Geraldton Iron Alliance, Clive Brown, today addressed the CEDA Mid West Infrastructure Lunch on the future of the Mid West iron ore industry.  A copy of his speech follows.

I?d like to thank CEDA for the opportunity to be here today.

There are three points I wish to make in this short address-

1. The strong public policy grounds that exist for Governments to support the development of the Mid West iron ore industry;

2. The potential size of the Mid West iron ore industry; and

3. The infrastructure that is critical to the development of the industry.

Let me return to the first of these points ? the reasons why Government should support the development of this industry.

Economic Benefits

A report by Economic Consulting Services estimated that the development of the Mid West iron ore industry would provide:

?         1,360 jobs during the construction stage;

?         4,254 jobs during the suggested operational stage of 25 years;

?         Construction expenditure of $5.5billion that will generate a further $13billion of expenditure elsewhere in the State;

?         Infrastructure provided by the industry will have a lasting benefit for the region ? noting that most infrastructure upgrades are funded by the companies themselves;

?         Oakajee Port has the capacity to attract other industries to the region; and

?         Development of the rail lines to the port will open up the possibilities for other mining operations ? not necessarily iron ore related.

Social Benefits

• The development of the State?s regions has been a key public policy goal of successive governments over many years.
• The City of Geraldton and the Mid West towns are permanent communities with a mixed economic base and sound community infrastructure.
• They are places where people like to live ? not too distant from Perth and with a moderate climate.
• The mining projects are looking to use a local workforce ? one that directly supports the economy of the region ? not fly-in/fly-out is not their preferred option.
• The further development of the Mid West provides an opportunity for it to be the most significant regional centre in Western Australia.
• The industry will provide indigenous Australians in the regions with good jobs and business opportunities.

Environment Benefits

• Parts of the region have been degraded by over grazing and exotic species.

• Based on current investigations less than one percent of the banded iron stone formations will be impacted by iron ore mining from our member companies.

• The industry has the capacity to work with the environment agencies to provide a positive net regional environmental outcome.  An industry sponsored Regional Conservation Association has already been established.

There are strong economic, social and environmental grounds for the State to support the development of the industry.

Potential of the Industry

• The industry has the potential to provide a sound economy and employment for 25 to 40 years based on our current knowledge of the resources available and based on current market demand.
• Capacity of industry will be limited by the access it gets to the resource.

Infrastructure that is critical to the development of the industry

1. Oakajee Port
2. Southern Transport Corridor ? Geraldton Port
3. 330kV line from Pinjar
4. Water Resources

Oakajee Port

• Government has an RFP process to determine which company, Oakajee Port and Rail or Yilgarn Infrastructure will be awarded the right to negotiate with the Government for the construction of the port and rail.
• The timeline for the RFP is 31 July 2008, this was previously extended by the Minister from 30 June.
• It is a crucial decision ? therefore it is important the Government gets it right.
• Timing is also important ? delays in making this decision can lead to delays in the development of the northern projects ? Weld Range ? Jack Hills and Wiluna West.
• Urgency ? the allocation of the right to negotiate a port development agreement with the Government - is only the first step in a process that involves a lot of work that needs to done before construction gets underway.

Southern Transport Corridor ? Geraldton Port

• The Southern Transport Corridor provides access to the Geraldton Port..
• Asia Iron and Gindalbie plan to export their magnetite through the Geraldton Port..
• Both these projects are long term ? large projects.
• Iron ore will be transported to the Port by slurry pipelines and/or rail through the Southern Transport Corridor.
• It is essential all planning decisions that facilitate the use of the Corridor for that purpose are made at an early date.

330kV Line

• The Alliance congratulates the Government on allocating $280million for the provision of a 330kV line from Perth to Geraldton.
• The two magnetite projects are significant users of power and assist in balancing and underpinning this important regional infrastructure investment.
• Now the funds have been allocated, it is essential Government ensures administrative and technical resources are allocated to ensuring the line is provided without delay.

Water Allocation

• The mines require access to water.
• The Alliance would like to see Government agencies expedite their plans to assess the underdeveloped water resources in the region and then ensure they allocate the water rights industry needs for its sustainable development.

The Mid West iron ore industry has the capacity to play a key role in developing regional Western Australia ? with appropriate support that objective can be turned into reality within a very short space of time.

Media contact:

Warrick Hazeldine                                         

Purple Communications                                

Tel: 08 9485 1254                                            

Mob: 0417 944 616                                        

About the Alliance:

The Geraldton Iron Ore Alliance (Alliance) has a membership of eight iron ore mining companies which are at various stages of exploration and development of mines in the Mid West. These companies are:

?         Mount Gibson Iron Limited

?         Midwest Corporation Limited

?         Crosslands Resources Ltd

?         Gindalbie Metals Ltd

?         Golden West Resources Limited

?         Royal Resources Limited

?         Asia Iron Limited

?         Atlas Iron Limited

Further details of the companies and their projects is available on the Alliance?s website at www.gioa.com.au.

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