magnetite highly profitable in tas

Others can do it so whats our problem ,Clive.

Grange gives nod to $110m Southdown DFSSTUART McKINNON, The West Australian June 10, 2011, 9:26 am tweet0EmailPrintThe West Australian ?

Grange Resources says it will self-fund its share of a $110 million definitive feasibility study for the $2.6 billion Southdown magnetite iron ore project near Albany.

The company said it would use existing cash reserves to fund 70 per cent of the costs of the study in line with its stake in the project, with joint venture partner, Japan's Sojitz Corporation funding the balance.

Managing director Russell Clark said the company could self-fund the study because of its "highly profitable" magnetite project at Savage River in Tasmania.

The company said prefeasibility modelling indicated project would cost about $2.57 billion.

Grange envisages a minesite, concentrator and associated infrastructure capable of shipping about 10 million tonnes per annum of high grade magnetite concentrate from the Albany port.

It estimates operating costs of $60 per tonne of concentrate produced and loaded.

The company expects the study to be completed by the first quarter of 2012.

Grange is 67 per cent owned by China's Shagang International Holdings.

Grange shares were up 1.5 cents, or 2.97 per cent, to 52 cents at 9.25am.