Gina Rinehart`s multi-billion dollar Roy Hill Iron Ore project, located 270 kilometres south of Port Hedland, is finally showing signs of becoming an operational facility.
The lead contractor Brookfield Multiplex recently started construction of the workers accommodation village at Roy Hill, with the first stage of the $190 million facility expected to be in operation by December 2012. There has been a lot of construction jobs created at the new mine with mining job applications for Roy Hill still being taken on the official website. The jobseeker.com.au website also has a number of mine jobs available.
The first stage involves construction of 400 dongas, with the remaining buildings and a central facilities precinct planned for completion by August 2013.
The accommodation area and precinct will cover 78 hectares and feature sporting and entertainment amenities, including a gymnasium and an essential swimming pool (for those sweltering WA summers), and office administration and management facilities.
The Roy Hill Iron Ore project, which is currently expected to cost $9.5 billion has expectations of� becoming one of Australia`s biggest iron-ore-producing mines in Pilbara. Included in the project was a 340 kilometre railway from the Pilbara iron ore mine to port, and associated infrastructure. Recently there has been some discussion between Gina Rinehart and Andrew Forrest of FMG on the possibility of a joint venture rail project which has the propensity to save each of the iron ore miners, significant investment dollars. Fortescue Metals Group`s Cloudbreak iron ore mine backs onto the Roy Hill project.
Mining analyst Gavin Wendt said sharing infrastructure would be a winning outcome for the two companies as Fortescue reacts to lower iron ore prices and Roy Hill attempts to secure funding to complete construction milestones.
Another encouraging result was at the opening of Fortescue’s second train unloader at Port Hedland yesterday when Fortescue’s Chief Executive New Power was happy to fuel talk of a potential rail deal with Mrs Rinehart, saying he would welcome an approach over shared infrastructure from the Roy Hill project. The train unloader is a key component of Fortescue’s expansion of Herb Elliott Port, which will support an increase in iron ore tonnes from the Cloud Break and Christmas Creek iron ore mines and the new Solomon mine which currently under construction. It’s a major milestone that will match Fortescue’s train unloading capacity with the existing shiploading capacity. The new train unloader increases Fortescue’s port infrastructure capacity to 115mtpa.
That’s a very good indication of where Australian mining partnerships are heading. With massive distances transporting iron ore to Port Headland, it makes economic sense for mining companies operating in the Pilbara to pool resources and share infrastructure. For instance, Fortescue’s 3 mining operations in the Pilbara Chichester Ranges covers an area the size of France!
Mr Power went on to say “By taking Fortescue’s iron ore production up to 155mtpa we’ve done a lot of duplication of our main line [iron ore railway] tracks so we’ve got the capacity to expand that capacity and keep upgrading the rail line to accommodate others who are actively mining in the Pilbara.
