<span class="" id="parent-fieldname-description"> The Western Australian Government is pushing for progress on the shelved Oakajee port project, following the official opening of Gindalbie Metalsâ new $2.5bn Karara magnetite mine 225km east of Geraldton. </span> <p>Following the new mine opening, the government announced it was looking to stimulate magnetite exports by introducing a new royalty rebate on the mineral, on a case-by-case basis.</p><p>Gindalbie opened the new mine, which has been developed by Karara Mining Limited (KML), a joint venture between the miner and Chinese steel producer Ansteel.</p><p>Karara is the largest resource development in the state’s mid-west region and is Australia’s second largest magnetite project.</p><p>It will be producing magnetite for export to China at a rate of 8 million tonnes per annum by the end of the month, according to Gindalbie.</p><p>Following the project’s opening, WA premier Colin Barnett announced the new rebate policy.</p><p>A rebate of up to 50% of the state’s 5% magnetite royalty will apply for the first 12 months of magnetite production. The policy will apply for a three year period from now.</p><p>By introducing the rebate, Barnett says the government is looking to entice more investors to the state, which would increase exports, boosting freight traffic to and from ports.</p><p>“It’s related to getting a magnetite industry established,” Barnett told Fairfax radio.</p><p>Barnett said the push for more investment was also aimed at pushing forward the on-again, off-again Oakajee Port project.</p><p>“[The rebate is] trying to build confidence in what is an emerging, high-value part of the mining industry, also to keep a good relationship with China and build that, and also to try and get enthusiasm for Oakajee,” Barnett said.</p><p>“It’s a goodwill gesture to the Chinese companies &hellip let’s face it, Australian policy out of Canberra to China on mining has been awful. What I’m trying to demonstrate is that Chinese investment is welcome here and we’ll take a partnering approach.”</p><p>CEO of the Association of Mining and Exploration Companies Simon Bennison said the rebate was “most timely.”</p><p>“AMEC has been working closely with the WA Government over the past two years in order to develop realistic industry wide royalty concessions that would foster development and growth of the emerging magnetite industry throughout the State,” he said.</p><p>“It is a very positive initiative that will be welcomed by magnetite producers, particularly noting the high up-front capital costs in establishing a magnetite mine.”</p>
