First magnetite shipment for Gindalbie

GINDALBIE Metals has waved off the first shipment of Karara magnetite concentrate from its export facilities in Geraldton – the first major magnetite shipment from Western Australia.
First magnetite shipment for Gindalbie First magnetite shipment for Gindalbie First magnetite shipment for Gindalbie First magnetite shipment for Gindalbie First magnetite shipment for Gindalbie

Karara Mining's Geraldton export facility

Kristie Batten

Loading of the Panamax vessel Sunrise Star was completed on Monday and the 55,000 tonne shipment left Geraldton yesterday for China.

It comes after the first magnetite concentrate was produced from the $A2.4 billion Karara project in November.

Gindalbie managing director Tim Netscher said the first shipment was a milestone for the project and its owners, Gindalbie and Ansteel.

“We have successfully produced and shipped our first magnetite concentrate within three months of starting up our infrastructure chain with the first DSO exports under the Karara banner and also within just weeks of commencing the commissioning of the Karara concentrator,” he said.

Gindalbie said the Karara concentrator was continuing to progress well, with production rates and concentrate quality steadily increasing in line with the commissioning and ramp-up plan.

The project is on track to achieve its nameplate capacity of 8 million tonnes per annum by the end of April.

The project also achieved its 1 millionth tonne of hematite shipped last month.

Last month Gindalbie raised $62 million for what it described as “unexpected events” during the commissioning phase.

Gindalbie shares jumped 8%, or 2c, to 27c on today’s news, which is much needed after a rough year on the ASX.

Shares in Gindalbie lost around 50% last year.

“While 2012 has without doubt been a tough year for Gindalbie from a share market perspective, this should not overshadow the very significant operational achievements of the year,” Netscher said.

“I am confident that the underlying value of our project will flow through over the coming year.”