China's iron ore miner Sinosteel Midwest Corporation has finished a feasibility study on its $2 billion flagship direct shipping ore project at Weld Range in Western Australia.

Its Australian unit Sinosteel Midwest Corp. intends to begin operations at Weld Range by 2013, subject to development of port and rail works at Oakajee on the state's west coast.

The company is one of the foundation customers for the Oakajee deepwater port project, a venture operated by Japan's Mitsubishi Corp. and Australia's Murchison Metals

Chief operating officer for Sinosteel Midwest Giulio Casello said it aims to ship its first ore from Weld Range in early 2014. In order to achieve this, "essential planning" has to be finalised this year on Oakajee, which is currently accomplishing its own feasibility studies, Mr Casello said.

Depending on the weather, Sinosteel intends to export an initial 60,000 tonnes of iron ore from Geraldton this week to Chinese steel mills, according to Mr Casello. This will be the first iron ore shipment from Western Australia's Mid West region from a China-owned company.

Sinosteel Midwest Corporation says it will start funding its Weld Range iron ore project by early next year. Financing would most likely come from Chinese banks, which offered the most attractive funding, the company said.

To date, $140 million had been shelled out on studies and drilling at Weld Range, which would be a major iron ore mine in the region, producing 15 million tonnes of the bulk commodity annually over 15 years and generating about $22 billion revenue, according to Mr Casello.