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Blue Hills DSO Hematite

SMC’s Blue Hills (Mungada) Direct Shipping Iron Ore (DSO) Project commenced operations in April 2013 and went into care and maintenance in May 2015, due to delays in receiving environmental approval to mine an extension of the resource.

The project involves mining, crushing, screening and transport of iron ore from two open pits at Blue Hills. Ore is transported via rail and exported through the port of Geraldton, so far SMC has mined over 4Mt of high grade iron ore.

The Blue Hills mine site are located about 84 km to the east of Morawa and 10km east of Karara Mining Limited’s Mine site.

Mining in these areas was previously carried out in the 1960s and 1970s by Western Mining (see photo inset). The project had low environmental impact as most of the activity occurred on previously disturbed and un- rehabilitated areas. As well as that, the mine design was amended to further decrease impact on the environment.

The site is in care and maintenance until further approvals to extend the mine are gained.

Project overview;

  • Currently being considered for approval by Minister for the Environment
  • 7 million tonne iron ore resource
  • Mined at Blue Hills, railed to Geraldton for export.
  • Significant economic benefit to the Midwest


  • 130 direct jobs, 1,000+ indirect jobs
  • >$400M operating expenditure
  • $35M Royalties
  • >$100M further supply chain purchases


  • Completed a 5yr rehabilitation project with Kings Park that proved Banded Iron Formations (BIF) could be rehabilitated
  • Started a new 5 year project, Aust Research Council: Centre for Mine Site Restoration
  • Committed to restoration of 100% of Acacia Woodmaniorium (rare plant) impacted by the mine extension
  • 98% of Mungada ridge will remain intact after rehabilitation


  • 130 direct jobs
  • Approx. 1,000 indirect jobs through rail, port and ancillary services
  • Refer to our Employment page for positions becoming available


  • SMC contributed $30M since 2008
  • Groups include
    • Sporting clubs, community resource centres, Aboriginal groups, Education groups, schools, universities, arts and community events, etc

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