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Green Light for Koolanooka/Blue Hills project

5 November 2009

Sinosteel Midwest Corporation is pleased to announce that the Western Australian Minister for Environment has given final State environmental approval for the Koolanooka/Blue Hills Direct Shipping Ore (DSO) project in the Mid West region.

The decision clears the way for the project to proceed to Federal environmental approval. This process is expected to take approximately 30 days, with development activities scheduled to commence in mid December.

Sinosteel Midwest Chief Operating Officer Giulio Casello said final State approval was the culmination of over three years of environmental assessment in consultation with the State Government.

"I'd like to take this opportunity to acknowledge the many people who have worked towards this goal since September 2006 ‐ including our own project team, members of the Mid West community who showed tremendous support during the appeals process, as well as representatives from the various decision‐making authorities," Mr Casello said.

"Situated on previously mined land, the Koolanooka/Blue Hills project makes good economical, social and environmental sense for the region and will provide direct employment for at least 70 people with flow on benefits to many more. "Furthermore, the project will give Sinosteel Midwest important cash flow and credibility with our customer base to ensure the development of our flagship DSO project at Weld Range, which will be a cornerstone project to ship out of the proposed Oakajee Port," Mr Casello said.

The final State Ministerial approval follows the September decision to uphold key appeals lodged by Sinosteel Midwest and members of the mid west community particularly in relation to the Environmental Protection Authority's recommendation to exclude Mungada East mine from the project.

The Minister's final approval was granted subject to the implementation of conditions which will ensure good environmental outcomes, which are consistent with Sinosteel Midwest's operating principles.

The Koolanooka mine site is located approximately 160km south east of Geraldton and 20km east of Morawa, and the Mungada East and Mungada West mine sites are located 60km to the east of Koolanooka.

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: E:

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.

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 continues to actively develop and explore the potential of its deposits and the outlook for the Company is exciting.

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