This week the operation reached its 2017 production target of 15 million tonnes of magnetite concentrate, a 36% jump on 2016’s result.
Sino Iron is Australia’s largest magnetite operation after an eight-year construction phase.
According to analysis from Deloitte Access Economics, Sino Iron will spend around A$51 billion in procurement of WA goods and services in the coming years.
The study assumes the extraction of 3 billion tonnes of run-of-mine product over the next 40 years.
Total export earnings from the mine are set to exceed more than $100 billion, while the mine’s workers are set to collect $8.7 billion in wages and the state government, $5 billion in royalties.
CITIC today launched a campaign called better partnerships to build understanding of the benefits of the project to the state, as well as a strong relationship between WA and China.
CITIC CEO Chen Zeng said the company had helped to secure a new industry in the Pilbara.
“Iron ore is being value-added here on Australian soil. This product is an increasingly important feedstock for steel mills in China,” he said.
“We’re now responsible for more than 60% of magnetite concentrate exported from Australia to China and have become a major seaborne supplier.”
Zeng said investment in new facilities had brought new technology to Australia and in turn, created new career opportunities.
“Next door to our concentrator is mainland Pilbara’s biggest, cleanest combined-cycle gas-fired power station,” he said.
“And down at the port we’ve built a state-of-the-art, large-scale desalination plant.
“We’re more of a giant, open-air factory than your typical mine - we’ve become a hub for magnetite processing expertise in this country.”
CITIC said its investment had also underpinned the development of the $1.1 billion Devil Creek gas processing hub and the proposed Tubridgi gas storage facility.
Sino Iron employs 1500 workers and 1100 contractors, and analysis found it supports another 3114 indirect jobs each year.
“We’re proud to be delivering enormous value through our operations to date, in partnership with the state of Western Australia,” Zeng said.
“Our challenges are well known. We remain focused on doing everything we can to place Sino Iron on a financially sustainable footing, to ensure the project reaches its full potential, for the benefit of all.
“We will only be able to achieve this through better partnerships.”
Late last month, a court ruled CITIC to pay Palmer’s Mineralogy nearly $200 million to settle a long-running dispute over royalties.
CITIC is considering an appeal, but has also warned that Mineralogy poses a threat to the future of Sino Iron and may “jeopardise Sino Iron’s viability and, in the worst case, lead to suspension of our operations”.
