New Mine Lease to Boost South Australia’s Iron Ore Exports

an iron ore mine

The presence of earthmoving machinery, diesel fuel tanks from manufacturers like durotank.com.au, and other equipment will be a common sight in the Iron Warrior mine in South Australia.

SIMEC Mining gained approval for a mining lease at the site in the Middleback Range. The permit allows the company to produce as much as 1.5 million tonnes of iron ore per year, which will increase the region’s exports.

Mining leases

Aside from the Iron Warrior lease, SIMEC also clinched approval for the Iron Sultan mine lease. It will produce hematite iron ore for the manufacturing of magnetite at the Whyalla Plant while supporting 56 jobs and 130 contractors along with the Iron Warrior lease.

SIMEC intends to break ground on the mining areas by early March. The company’s plans represent its expansion in Australia after acquiring Glencore’s Tahoor mine in New South Wales. Aside from boosting South Australia’s iron ore exports, SIMEC also expects one of the leases to reduce steel costs for its affiliated company. These investments have prompted the state government to reiterate its call for sealing the Strzelecki Track.

Sealed tracks

South Australia Premier Jay Weatherill said that sealing the Strzelecki Track would not just create growth opportunities for the oil and gas sector, but also create jobs and establish new tourism routes in the state. According to a government report, a sealed outback road may provide up to $1.4 billion to the state’s economy over the next 40 years.

For this reason, Weatherill urged the federal government to provide funding assistance for the “national endeavour.” He also said that private sector financing should also be an option. However, financial aid remains elusive even after the state government submitted the project as a priority for federal funds.

Private sector and government funding have always complemented each other in terms of energy investments. Do you think the same should be done for sealing the Strzelecki Track?