PERTH (miningweekly.com) – Emerging iron-ore producer BC Iron is pushing ahead with the development of its Nullagine iron-ore mine, it said on Thursday, as major producers threaten to halt projects after the government proposed a 40% super profits tax (SPT).

The Nullagine joint venture (JV) is expected to ship its first ore in December, and to reach a production rate of three-million tons a year, with a shipment of one-million tons a year, by June next year.

The JV, in which Fortescue Metals owns 50%, would not be affected by that company’s decision to place $15-billion worth of investment on hold, BC Iron said in a statement.

Fortescue announced on Wednesday that the expansion plans of its Solomon and Western Hubs would be put on hold as it was faced with funding issues on the back of the proposed SPT.

But, BC Iron said that Fortescue’s shelving of its two projects would have no affect on the Nullagine development, as the ore mined from this project would be transported through Fortescue’s Chichester operation.
Large iron-ore miners, such as BHP Billiton and Rio Tinto, have criticised the government’s SPT proposal and had said that they would re-evaluate their projects in Australia.

BC Iron MD Mike Young said that the company’s senior management was taking an active role in discussions and consultations between the industry and the government on the proposed tax.

“The company has strong views on the proposed SPT, and believes that it will have a negative impact on the resources industry and the company’s plans for any additional project development in Australia,” he said.

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