China Metallurgical Group Corp unveiled plans to develop an iron ore mine in western Australia, Reuters reported on Monday, citing the Australian Financial Review.
The construction of its Cape Lambert project will start in mid-2012 and start operation by 2015, the report said.
China Metallurgical plans to mine 55 million tons of low-grade magnetite iron ore at the project and then process it into a magnetite concentrate at a rate of 15 million tons a year, according to the report.
The Beijing-based company plans to boost the annual magnetite concentrate production to 25 million tons eventually and expects to be mining at the project for about 25 years, Reuters said, citing the Australian media.
A 300-megawatt natural gas-fired power generator and a desalination plant will also be built as part of the development plan, the report said.