<p>Portman Mining has plans for a $55m expansion to increase production from its 100%-owned Koolyanobbing operations in Western Australia from 5m tonnes to 8m tonnes per annum.</p> <p>The new long-term production rate should be achieved by the last quarter of 2005, with the capital payback period being less than 12 months. </p> <p>This expansion should cement its long-term future as an independent Australian iron ore producer.</p> <p>The company said today (Monday, October 18) it plans an interim production upgrade to 6mtpa from January 1, 2005 – positioning Portman to take advantage of strong global demand for iron ore, particularly in China.</p> <p>The decision follows the completion of a feasibility study to evaluate the optimum long-term production level for the Koolyanobbing operations and is subject to the attainment of relevant licences in the WA.</p> <p>Work on the expansion will start as soon as possible and will involve 12 months of construction. </p> <p>Key project items will include a major upgrade of crushing and screening capacity at the mine, improvements to the railway to Esperance, with extended passing loops to accommodate longer ore trains.</p> <p>It will also include the purchase of some 140 new ore wagons and an additional 300,000 tonne capacity shed at the port of Esperance.</p> <p>The capital cost estimate also includes an allowance of $5.5m for pre-stripping and mine development.</p> <br />
