Western Australia's Environmental Protection Authority (EPA) has partially rejected Perth-based iron ore producer Sinosteel Midwest's mining plans for its Koolanooka/Blue Hills direct shipping iron ore (DSO) project, since part of the project area should be a nature reserve.
Sinosteel's project consists of three mine sites: Koolanooka is based approximately 190 kilometers east of Geraldton, with Blue Hills, including Mungada East and Mungada West, a further 70 kilometers east.
The Koolanooka/Blue Hills DSO project is located on old mine sites, all formerly mined in the 1960s, and therefore does not represent degradation of an area of untouched or pristine natural environment.
The EPA released its report on June 2, recommending part of the project for ministerial approval, while it rejected the proposal as regards the Mungada East mine.
However, Sinosteel is arguing that the Mungada East mine is integral to the economic viability of the overall project.
The EPA was considering Sinosteel Midwest's proposal for the project which involves the crushing, haulage and shipment of 2 million mt of ore at Koolanooka and of 3 million mt at Mungada over a five-year project life.
Sinosteel Midwest's COO Giulio Casello said the company was disappointed and would review the conditions and recommendations contained in the EPA's report and respond in the coming days.
"Sinosteel Midwest's Koolanooka/Blue Hills project has been in the environmental approval process since September 2006 so we are eager to progress through this final stage in a timely manner," Mr Casello added.
The EPA's report is now open for a 14-day public appeal period closing on June 16, before entering the appeals determination and the final ministerial approval process.
Chinese raw materials supplier Sinosteel Corporation purchased and won control of Midwest Corporation in 2008.