WA's Nullagine iron ore project remains
Plans for a joint venture mining project in Western Australia will continue despite concerns and issues on the proposed Super Profits Tax.
The multi-million dollar Nullagine iron ore project will be funded by BC Iron and Fortescue Metals Group.
A representative of BC Iron said on Thursday the project's development timetable will push through and is expected to produce its first iron ore by December of this year.
The announcement was released after Fortescue has put on hold its $17 billion expansion projects on Wednesday due to debt, other financial problems and threats on the federal government's mining tax.
Two Fortescue projects include the $US9 billion Western Hub and the $US6 billion Western Hub in WA's Pilbara region.
BC Iron said Fortescue's decision will not affect its Nullagine joint venture project as its iron ore will be transported through Fortescue's Chichaster operations.
The first iron ore production in Nullagine is expected to ship in December, with a target rate of three million tonnes per annum.
The company also admits it was thoroughly concerned on the looming resource super profit tax.
"The company has strong views on the proposed RSPT, and believes that it will have a negative impact on the resources industry and the company's plans for any additional project development in Australia," BC Iron said in a statement.
Senior management team of BC Iron will hold discussions and consultations with the federal government.