SYDNEY, Jan. 24 (Xinhua) -- The Western Australian government has signed a deal with New Zealand Company, the Todd Corporation, to develop an iron ore mine in the states north western Pilbara region
The five billion Australian dollar (3.8 billion U.S.) project includes construction of a 162 kilometer railway between Karratha and Port Hedland, which is expected to generate 3300 new jobs and produce 10 million tonnes of iron ore per year.
The State agreement includes a requirement for local industry participation and community development plans to be submitted to the government for approval, maximizing the benefits of the project for West Australians, Western Australian Premier Colin Barnett told local media Monday.
The proposed export facility will also use custom-built barges to transfer ore onto ships, reducing costs and environmental impacts.
Since the end of Australias mining boom, the state has seen a downturn in the mining sector, however Premier Barnett believes there is still great potential for the industry.
To all those people wanting to write of the resources sector, youre wrong, he said.
Construction is predicted to commence in 2018.
