New supply chain boosts Gindalbie shipments

A bolstered supply chain has paved the way for a rapid ramp up of iron ore shipment in WA

New supply chain boosts Gindalbie shipments
New supply chain boosts Gindalbi shipments
By Sean Muir |
November 8, 2012

A supply chain boost has paved the way for
a rapid ramp up of iron ore shipment at Gindalbie Metals' Karara project in Western Australia.

Gindalbie Metals announced today it had passed
a milestone of shipping 250,000 tonnes of iron ore from its Karara project at Geraldton, Western Australia.

More than 59,000 tonnes of hematite direct shipping ore (DSO) left the new Karara Export Terminal yesterday, bringing the company’s total shipments to more than 293,000 tonnes in less than three weeks.

Gindalbie Managing Director Tim Netscher says the milestone demonstrates the Karara project's ramped up supply chain is performing well.

"We are extremely pleased by the performance of our infrastructure facilities – including the rail network, storage facilities and port operations – during this early phase of the ramp up process," Netscher says.

"These initial shipments of DSO have well and truly confirmed the capabilities of our integrated logistics chain ahead of the impending commencement of magnetite production at Karara."

Gindalbie Metals announced on October 18 its first commercial shipment of iron ore from the Karara project terminal in
Western Australia.

This was a significant milestone for the company
as it was the first time the Karara project's
new integrated mine, rail and port logistics chain had been used.

The first shipment followed the official opening of the export terminal by
the state's
Transport Minister Troy Buswelll on September 18.

The Gerldton facilities
include a dedicated berth, ship-loader, a 255,000-tonne storage facility and a twin-car rotary dumper for train unloading.

The Karara terminal is capable of handling up to 16 million tonnes per annum (mtpa).

Netscher says loading time has improved cargo on cargo and the Karara infrastructure and logistics chain is performing better than expected during ramp-up, including the rail network, dual-wagon tipper, storage shed and ship-loader.

"We are very pleased with the early ramp-up performance, which sets the scene for Karara to rapidly move to routine shipments of ore," he says.

"The ability to turn a loaded Panamax vessel around within 48 hours demonstrates that we already have the capability to ship in excess of 10mt (million tonnes)
on an annualized basis.

"With further enhancements and fine-tuning, this shows the capacity of this facility to achieve our longer term target of 16mtpa."

Gindalbie Metals is an Australian iron ore company based in Western Australia and listed on the Australian Securities Exchange.

The company is developing
several projects in the state’s mid-west region.

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