Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) announced today that all Australian Commonwealth and State governmental approvals have been finalized for the Mt. Jackson J1 Deposit.
It took the Company slightly over two years to complete the obligatory environmental, mining and aboriginal heritages approvals.
The Mt. Jackson J1 Deposit is an extension of Cliffs' existing Koolyanobbing Iron Ore deposits in Western Australia. The deposit contains an estimated 30 million tonnes of iron ore reserves with an approximate 60% Fe grade.
In September 2010, Cliffs' Board of Directors approved a $320 million Australian dollar capital project at its Koolyanobbing Complex. The Mt. Jackson J1 Deposit Project is expected to contribute to Cliffs' ability to increase production output at Koolyanobbing from nominally 8.5 million tonnes to 11 million tonnes annually.
Duncan Price, Cliffs' senior vice president and managing director, Asia Pacific Iron Ore, commented, "The Mt. Jackson J1 Deposit underpins Cliffs' planned expansion in Asia Pacific as well as secures expanding our footprint in the region for at least the next decade."
As reported in September, capital expenditures for expansion of Koolyanobbing to 11 million tonnes per annum will be made over the next two years, with the bulk of the spending occurring in 2011. The improvements are expected to consist of enhancements to the existing rail infrastructure, an increase in rolling stock, and upgrades to various other existing operational constraints. Cliffs anticipates these improvements to be fully implemented in the second half of 2012.
Source: Cliffs Natural Resources Inc.