Karara

The Karara Magnetite iron ore mine is located about 200 kilometres east of Geraldton, within the Shire of Perenjori, in the Mid West region of Western Australia. The mine, which is a Joint Venture between Ansteel, a Chinese steel producer with a 52 percent shareholding and Gindalbie Metals, that has a 48 percent shareholding, is managed by Karara Mining Limited.

Karara Mine is the Largest Iron ore Mine in Mid West Western Australia

The long life, Karara open cut iron ore mining project, which is the largest iron ore mine in the Mid West of Western Australia, is capable of producing more than 30 million tonnes of magnetite a year, alongside a smaller hematite operation.

Karara Mine is a World Class Iron ore Mine

The Karara project is a world class mining operation because of its extremely low waste, consistency, quality and scale, that enjoys a relative low running cost because of its favourable ore stripping ratio. The operation mines low grade magnetite iron ore that produces a high grade quality concentrate that is sought after by steel mills in Asia. The project includes its own infrastructure base and a major processing plant.

Karara Mine Exports First Magnetite Shipment in 2013

The first hematite ore shipment from the Karara mining operation took place in March, 2011, with the first magnetite shipment leaving the mine in early January, 2013. The magnetite shipment was of particular significance in that it was the first commercial shipment of magnetite concentrate to leave the Mid West region, as most of the iron ore shipped out of Australia prior to this shipment had been hematite ore.

Karara Magnetite ore has Lower Iron Content than Does its Hematite ore.

Magnetite ore has a lower iron content to that of hematite ore and is found to be particularly suitable in the manufacturing of iron ore pellets, that are used in the production of steel. The first magnetite ore exported out of the Geraldton port totaled 57,000 tonnes that was shipped to China.

Ansteel Pulls out of Joint Venture Partnership With Gindalbie Metals in Running the Karara Project

In early 2016, the Karara mine was involved in a financial crisis that came about because of the continuing low global price for iron ore eating into its profitability, when the Joint Venture partner, Ansteel, announced it would no longer fund the project. This decision, made by Ansteel, cast doubts on whether Gindalbie could continue to operate the project without the financial support of a major partner.

Costs may Force Karara Mine Into Care and Maintenance

It is feared that unless Gindalbie Metals can find a way to lower its operational costs even further, it may be forced to place the mine into care and maintenance for a period, until prices improve. The Karara mine employs around 1,000 mine workers. The Karara mine was forced to reduce its workforce by 15 percent in March, 2015, because of market conditions at the time, which included the falling iron ore price.