SHIRE OF YILGARNMINUTES ?V ORDINARY MEETING OF COUNCILFRIDAY,...

SHIRE OF YILGARN
MINUTES ?V ORDINARY MEETING OF COUNCIL
FRIDAY, 17TH DECEMBER 2010

CAZALY RESOURCES ?V LETTER OF SUPPORT
The Shire of Yilgarn (Shire) has been working together with Cazaly Resources Limited (Cazaly) to develop the Parker Range Iron Ore Project (Project) anticipated to be operational by mid-2011.

The Shire understands from Cazaly that a decision process for the allocation of iron ore export through Kwinana Bulk Terminal Berth 2 (KBT) is nearing conclusion by Fremantle Ports. The Shire is presenting this letter of support for the Parker Range Project and Cazaly Resources Limited for the purpose of assisting to obtain port export allocation at KBT for the Project to proceed.

Background
The Project consists of a proposed new iron ore mine located approximately 52 km south south-east from the township of Southern Cross and 14 km south of Marvel Loch in WA. The Project has an initial life of mine of between 7-10 years at nominal 4 Mtpa production. The Project involves an open pit, road transport to a new rail terminal at Moorine Rock, and rail 414 km on the Eastern Goldfields Railway to the port of Kwinana KBT for export. Supporting infrastructure includes a new accomodation village at Marvel Loch and extensions to existing Western Power network.

Reasons for Support
The Shire??s principal reasons for supporting the Project are:
?h A major project development of about $300m including third party investment, with significant opportunities for the Shire of Yilgarn.
?h Establishment of a new, high quality iron ore mine in a new southern Yilgarn Provence near townships of Southern Cross, Marvel Loch and Moorine Rocks.
?h Creation of approximately 750 construction jobs for the mine development, with a peak workforce of 250 persons over a 12-month period.
?h Creation of 159 permanent operational jobs for 7-10 years (initially), not including short term operations and maintenance support workforce from the local area.
?h Target to recruit at least 25% local personnel from the Shire for both construction and operations (i.e. over 200 new jobs for local residents).
?h Extensive commerce benefits to Shire of Yilgarn business during construction and operational phases, specifically:
o Light industrial services (fabrication, fitting, electrical and equipment servicing)
o Materials and hardware supply
o Water haulage
o Catering and cleaning
o Paramedical services
o Local accommodation and meals in existing townships
o Security
o Fencing services
o Bus operations
o Vehicle maintenance
o Freight delivery
o Explosives supply
o Concrete supply
o Miscellaneous earthmoving and civil equipment hire
o Gravel supply
?h Community participation and support programs (e.g. Fire and Rescue, Hospital and local Doctor Funding, Fundraising Events).
?h New 173 workers accommodation village at Marvel Loch ($12M) to reinvigorate the township, inclusive of water and maintenance of community oval.
?h Upgrade of Shire roads, inclusive of Parker Range - Forestania - Southern Cross Road and Liddell Road (in part) to sealed bitumen standard ($5m).

http://www.yilgarn.wa.gov.au/downloads/minutes/minutes201012.pdf

What to take out from the document: "The Shire understands from Cazaly that a decision process for the allocation of iron ore export through Kwinana Bulk Terminal Berth 2 (KBT) is nearing conclusion by Fremantle Ports."