TRANSPORT will be essential for the future success of mining on Eyre Peninsula, an industry spokesman told delegates at the Eyre Peninsula Local Government Association conference on Monday.
Dr John Parker from Lincoln Minerals said several mining companies on Eyre Peninsula are poised for production, handicapped only by transport restrictions.
Wilcherry Hill (near Kimba) miner IronClad Mining plans to use road trains and trains to export from its iron ore site to Kimba. Dr Parker said IronClad estimates it will cost $8 a tonne to get the ore onto trucks, $30 per tonne to transport it to Adelaide, and another $11 per tonne to get it on a ship (port charges).
Meanwhile, Centrex is pressing ahead with its plans to export iron ore from Port Lincoln and its plans for a deep water port to the north of Tumby Bay.
A condition of the Centrex approval to export from Port Lincoln is to have 12 months of continuous monitoring of the marine environment prior to exporting. Marine sondes have been installed and monitoring started in January this year.
Centrex chief operating officer Kevin Malaxos said the company's longer term future and that of future bulk commodity exporters on Eyre Peninsula rests on a new deep water port.
Centrex plans to submit a development application for the Sheep Hill Port as early as possible.
"This will convince the State Government that Centrex is serious about the need for a new port and also secure the long term future of Centrex on Eyre Peninsula," he said.
Power and water supplies on Eyre Peninsula were also inadequate for mining and Dr Parker called on local government to join the lobby for more infrastructure to "benefit EP communities".
"The employment opportunities in mining are a very real opportunity," he said.
"Centrex Metals estimates 120 jobs at Wilgerup permanently - and double that during construction - with maybe another 60 at Wilcherry Hill."
"On top of that you take the number of jobs created in communities through schools, hospitals and shops - it's a win for everyone."