Roy Hill Mining Jobs Update.
In a tactic to help raise $6 billion in finance by the end of this year, the huge Roy Hill iron ore project, in the Pilbara region of WA, secured contracts to supply ore to two more Chinese steelmakers last week after signing a similar agreement with Shougang Group, one of China`s largest steel mills, on the same day.
Almost $1 billion has already been spent on this project which has awarded $1.5bn in construction contracts and has more than 1000 people in mining jobs. With a total project value of $13 billion, a construction workforce of over 8000 and a permanent workforce of 2000 in the operation phase, it is scheduled to be in production by late 2014. Iron ore output is expected to top 55 mtpa (million tonnes per annum) when production begins.
The Roy Hill mining project will include a 342km heavy haulage railway, port infrastructure and a remote operations centre in Perth.
Partners from Japan, Taiwan and South Korea have already agreed to buy a combined 16.5 million tonnes of iron ore per annum from the miner. Gina Rinehart`s Roy Hill Holdings is also looking to secure more mining contracts for long-term iron ore supply, as they attempt to convince financiers to commit to the project in a climate of rising construction costs, poor iron ore prices and a world-wide economic slowdown.
Partners put faith in Roy Hill project
Mrs Rinehart posted a message on the Roy Hill website last week saying the equity partners had put their faith in the Roy Hill project “at a time of continuing economic uncertainty and knowing Australia is one of the highest cost countries in the world”.
“We are very fortunate our partners proceeded to invest substantially in our project, instead of low-cost projects in Africa, which also have large untapped iron ore resources,” she said.
Quick stats for the Roy Hill iron ore project:
- Aiming for late 2014 start-up
- Cost $9.5 billion
- $1.5 billion in construction contracts awarded
- Project value $13 billion
- Estimated $55 mpa (million tonnes per annum)
- 25% funding from overseas investment