IronClad Mining expects production at its Wilcherry Hill iron ore site, 30 kilometres north of Kimba, to begin as early as November this year.

The Australian-owned miner is now in talks with the Kimba District Council about employment and infrastructure needs in the district.

Kimba council chief executive Daryl Cearns says the future of the Kimba community may rest on the success of local mining ventures and council is keen to support the IronClad venture.

"We know that if there's any major expansion of Kimba it has to come from mining," he said.

"Council's long term plan says we have to work as hard as we can with mining partners to make Kimba a base," Mr Cearns said.

While the Australian miner is working hard behind the scenes to have the project up and running this year, the Kimba council is investigating feasible housing opportunities for an expected new workforce.

The council will commit around $30,000 to a feasibility study investigating development of as many as 30 or 40 blocks - if the demand arises and partner funding can be found, and the council is already in the process of rezoning an area from rural to residential for the proposed development.

The Wilcherry Hill direct shipping iron ore project will cost around $45 million to build but could offer big returns if ore prices continue to climb.

Plans for a bulk commodities port at Point Bonython could also shave costs.

IronClad executive chairman Ian Finch said the company is now in talks with partners for the project, but may decide to fund the initial capital outlay itself.

Stage one of the project will involve the mining of high-grade magnetite (with an iron grade of more than 60 per cent) from shallow, open-cut pits, with lower-grade ore stockpiled for future processing.

The company was well advanced with the approvals process and a full bankable feasibility study for the project would be completed in late March.