BB, the Gingerella Road is the main access road used by Kagara from Chillagoe to Mt Garnet. Its a series of roads for the serving the cattle grazing industry and a small limestone mining operation(Ootan). The series of roads are variously known as the Sundown road, Ootan road, and now Gingerella road.
The Kagara operations have greatly increased the use of this road, particularly with heavy trucks, and as mentioned Kagara maintained the road for this heavy traffic. However, the longer term plan of Kagara was that all the base metal mining of Chillagoe region would remain in Chillagoe and be treated at the Mungana mill. The flow of mined ore from Mungana to Mt Garnet was because the build of the Mungana mill was held up by the GFC and that the better graded zinc ore of Mungana could be treated at Mt Garnet.
Its likely that any concentrate that was produced from the Mungana mill would be trucked to the Townsville port via the Gingerella, so there has always been the need for a long term upgrade.
About 12 years back, there was development of the concept of bring natural gas from PNG to Queensland. The Gingerella road was proposed for a large pipe storage site and access road to the pipe laying activities in the Cairns/Townsville hinterland. The concept died.
So the Gingerella road is a reasonable access, Kagara has been the only large traffic volume user.
The Herberton road is only a local matter relating to transport of Baal Gammon ore to the Mt Garnet mill.
KZL Price at posting:
15.5¢ Sentiment: None Disclosure: Not Held
