WPG Resources signs off on iron ore mine in SA

The announcement follows the company raising more than $200 million to fund the development of the mine over the past few weeks.

WPG is now awaiting the two final approvals for the mine  its development approval for export-related capital works at Port Pirie, and its mining and rehabilitation plan for the mine itself.

The company aims to start mining operations next year following the granting of the approvals, and will be exporting high grade iron ore via Port Pirie.

The company will produce direct shipping ore (DSO) - so called because it does not have to undergo expensive upgrading before export.

The company is planning to ship 3.3 million tonnes of ore a year from Peculiar Knob initially, and hopes to prove up more resources at its nearby Buzzard project to maintain a production rate of three to four million tonnes a year for 10 years.