Name and Location
Karara iron-ore project, Australia.

Client
Karara Mining, a joint venture (JV) between Gindalbie Metals (47.84%) and Ansteel (52.16%).

Project Description
The project involves the development of an iron-ore mine in the midwest region of Western Australia. The Karara project tenements cover about 150 km² of highly prospective banded iron formation and include the 4-km-long Karara magnetite deposit and surrounding high-grade hematite ore deposits.

The project will be implemented in two stages to build a ten-million-ton-a-year iron-ore producer.

Stage 1 involves the mining of direct shipping hematite ore from Karara to deliver about eight-million tonnes a year of magnetite concentrate and up to three-million tons a year of hematite.

The logistics involve mining on site, followed by road/train haulage along the existing 85 km haul road to Morawa, where a rail siding will be built for loading ore onto rail wagons for cartage on the existing midwest railway, more than 200 km to the Geraldton port.

Stage 2 involves the mining and concentrating of the magnetite deposit at Karara.

The logistics entail the mining of up to 20-million tonnes a year of raw magnetite ore, followed by a concentration process on site at Karara to produce eight-million tonnes a year of magnetite concentrate, which will be transported through a 225 km slurry pipeline to the industrial estate at Narngulu, 6 km east of Geraldton.

The latest reserves and resources defined are expected to result in the production of 30-million tonnes of iron-ore a year for a 35-year life-of-mine.

Value
$2.63-billion.

The tailings management contract is valued at A$23-million a year.

Duration
The Karara project was officially opened on April 9, 2013.

Latest Developments
Iron-ore miner Gindalbie Metals has announced that the operating vehicle for its Karara project has secured a $300-million loan facility. The facility has been arranged by joint venture partner Ansteel.

Karara Mining has signed a binding facility agreement with China Merchant Bank for the new fixed-term loan facility, which will meet the previously outlined A$123.6-million funding shortfall for the Karara project to reach nameplate capacity.

The additional debottlenecking work will allow for the Karara project to reach its nameplate capacity of 8.8-million tonnes a year.

Meanwhile, Karara Mining has also obtained a waiver from its existing Chinese Banking Syndicate for breach of a financial debt service cover ratio under the terms of its senior debt facilities for the December, March and June quarters.

Key Contracts and Suppliers
Worley Parsons (project management services); Doric (design, supply and installation of Karara construction camp); Bateman and ProMet Engineers (front-end engineering and design); Polysius Australia (supply of four large ball mills and two high-pressure fine-grinding tower mills); Metso Corporation (secondary crushers); FLSmidth (primary crushers); China Development Bank and Bank of China (debt finance); Brierty (constructor of Karara access road and preferred mining contractor); Wearside Construction (iron-ore storage structural and mechanical works at Geraldton port); Aecom (detailed engineering design for Geraldton port); Amec Minproc (construction management services at Karara mine site); BIS Industries (tailings management) and Downer EDI (openpit mining contract).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bateman, email enquiries@batemanengineering.com.au.
Brierty, tel +61 8 9459 2855, fax +61 8 9459 8202 or email info@brierty.com.au or investor@brierty.com.au.
FLSmidth head of investor relations and corporate communications Pernille Friis Andersen, tel +45 36 18 1887, fax +45 36 16 1922 or email pefa@flsmidth.com or corpir@flsmidth.com.
Gindalbie Metals, tel +61 8 9480 8700, fax +61 8 9480 8799 or email gbg@gindalbie.com.au.
Karara Mining, tel +61 8 6298 1888 or fax +61 8 6298 1099.
Metso Corporation investor relations manager Marja Mäkinen, tel +358 20 484 3211 or email marja.makinen@metso.com; or investor relations assistant Anne-Mari Ylikulppi, tel +358 20 484 3117 or email anne-mari.ylikulppi@metso.com.
Polysius Australia, tel +61 8 9494 7474, fax +61 8 94.