The first shipment of iron ore from Gina Rinehart’s $10 billion Roy Hill mine arrives in China next week, another milestone in a project that began more than 20 years ago.
The shipment from the Roy Hill mine in Western Australia is being delivered to the port of Caofeidian, 200km southeast of Beijing, under a long-term contact with one of China’s largest steelmakers, Shougang International, signed four years ago.
“It’s a pretty exciting time for us,” Roy Hill’s chief financial officer, Garry Korte, told The Australian. “We had our first shipment of ore in December. It went to Posco in South Korea where it is already being used to make steel. “Now we are approaching our next milestone which is the first shipment to arrive in China.
“A lot of people have worked very hard over the past few years and it is very pleasing to see the production finally coming through.”
Chinese buyers, including the state-owned Shougang, are expected to take some 25 million tonnes a year of Roy Hill’s projected production of 55 million tonnes a year.
Roy Hill says the project is expected to be operating at full capacity by the end of the year.
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