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EPA fails to fully recommend Koolanooka / Blue Hills Project for approval

MEDIA RELEASE
2 June 2009

Sinosteel Midwest Corporation advises that the Environmental Protection Authority (EPA) today released its Report for the Koolanooka/Blue Hills (Mungada) Direct Shipping Ore (DSO) Project in the Mid West region of Western Australia.

While the EPA Report recommends part of the project for Ministerial approval, it has failed to recommend approval of Mungada East mine which is integral to the project proceeding economically.

The Koolanooka/Blue Hills (Mungada) Project consists of three mine sites, all formerly mined by Western Mining (WMC) in the 1960s. Koolanooka is based approximately 190km east of Geraldton with Blue Hills (Mungada East and Mungada West) a further 70km east.

The EPA was considering Sinosteel Midwest's Public Environmental Review (PER) proposal for the project which involves the crushing, haulage and shipment of ore at Koolanooka (2 million tonnes) and Mungada (3.8 million tonnes) over a 5‐year project life. Sinosteel Midwest's COO Giulio Casello said the company was disappointed and would review the conditions and recommendations contained in the EPA Report and respond in the coming days.

"Sinosteel Midwest's Koolanooka/Blue Hills Project has been in the environmental approval process since September 2006 so we are eager to progress through this final stage in a timely manner," he said.

"This is an important project for the Midwest region, so we encourage all stakeholders to review the recommendations in the report and formally express their views prior to the end of the appeal period. Further information on how to do this is available on our website at www.sinosteelmidwest.com.au."

The EPA Report is now open for a 14 day public appeal period closing on 16th June, before entering the appeals determination and final Ministerial approval process.

ENDS

For more information contact:

Warrick Hazeldine Caroline Thomson
Purple Communications Purple Communications
P: 08 6314 6300 P: 08 6314 6300
M: 0417 944 616 M: 0410 479 489
E: whazeldine@purplecom.com.au E: cthomson@purplecom.com.au

About Sinosteel Midwest Corporation Limited

Sinosteel Midwest Corporation (Sinosteel Midwest) is developing iron ore and steel materials projects from one of the largest land holdings in the expanding Mid West resources region of WA. It has advanced production opportunities for iron ore at Koolanooka, Weld Range, Jack Hills and Robinson Range.

Sinosteel Corporation, one of China's biggest suppliers of raw materials to Chinese steel mills, purchased Midwest Corporation in 2008. It is committed to the responsible and sustainable development of Sinosteel Midwest's assets.

Phase one of Sinosteel Midwest's development is the Koolanooka/Blue Hills (Mungada) Project (Koolanooka and Mungada sites) which will produce a minimum of 5.8 million tonnes over a period of five years – phase two – the Weld Range project ‐ is expected to produce 15 million tonnes per annum and will be a cornerstone project to export out of the proposed Oakajee Port.

The Koolanooka/Blue Hills Project is currently going through the final stages of pre‐mining environmental approval, and has been in the environmental approval process since September 2006.

Sinosteel Midwest possesses the capital, resources, technical skills and the people to play a major role in the development of the Mid West region, and is positioned to continue doing so actively now, notwithstanding the global financial crisis.

Sinosteel Midwest possesses the capital, resources, technical skills and the people to play a major role in the development of the Mid West region, and is positioned to continue doing so actively now, notwithstanding the global financial crisis.

www.sinosteelmidwest.com.au

EPA Report & Recommendations

The EPA Report & Recommendations is entitled:
"Koolanooka/Blue Hills Direct Shipping Ore Mining Project, Shires of Morawa & Perenjori Report and recommendations of the Environmental Protection Authority
Report 1328
June 2009"


And can be downloaded from the EPA's website at: www.epa.wa.gov.au

Click here to download the full announcement.
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