Mount Gibson’s new iron ore mine closer to approval

Mount Gibson’s new iron ore mine closer to approval

Western Australian iron ore producer Mount Gibson (ASX:MGX) has been given authorisation by the state’s environmental agency (EPA) for its proposed Iron Hill mine.

The new mine, located 3km from Gibson’s existing Extension Hill operation is anticipated to offset an imminent output drop as mining at Extension will complete by the end of 2016.

The last ore is planned to be exported early in 2017.

The EPA recommendation will be open for public comment for two weeks. Western Australia’s Environment Minister Albert Jacob will determine whether the project can move forward.

Capital investment into mining iron ore has fallen dramatically over the past two years with the iron ore price of $56.9 per tonne. Iron ore prices have regained strength in the past weeks and producers are becoming more optimistic.

Iron Hill will allow mount Gibson to stay in business for an additional two to three years.