BC Iron to Move Forward with Nullagine Project

Submitted by Jim Thesiger on 20 May, 2010 - 16:07

The Western Australia based iron exploration and mining company BC Iron (BCI) has declared that it is going to move forward with its multimillion dollar worth of Nullagine iron ore join venture project by following the schedule. The declaration came in at a time when the entire mining industry of Australia is engaged into a debate with the federal Government regarding the effects the tax would have in this sector. BC Iron too has expressed its concerns regarding the tax. BC Iron and Fortescue Metal Group jointly holds the ownership of the Nullagine iron ore project which is expected to start production on December this year. The BCI statement came in at a time when Fortescue Metal is planning to hold more than $17 billion worth of expansion projects since the proposed super profit tax has made the debt financing more difficult. Fortescue projects which are put on hold include the Solomon Hub (worth $US9 billion) and Western Hub ($US6 billion).

According to BC Iron, Fortescue’s decision of holding some of its projects is not going to affect the plan regarding the Nullagine operation since the resources produced from that project is going to be transported through the Chichester operation of Fortescue where the expansion plans are not changed. According to the plan, three million tonnes per annum is expected to be produced from Nullagine which will go for its first shipment this December.

While talking about the resource super profit tax (RSPT) BCI stated that, the proposed tax going to affect its business along with the entire sector negatively. According to the company, the Western Australia based miner is playing an active role in the talks with the Government regarding the implementation of the controversial tax which is already effecting the operations of a number of renowned Australian mining companies.