IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
WPG Resources announced on Tuesday it has reached a major milestone for the development of its flagship Peculiar Knob (pictured) iron ore mine south east of Coober Pedy in South Australia, after receiving government approval.
WPG also said that the company expects that the Mining and Rehabilitation Program for Peculiar Knob will be approved during July. Forecast production at 3.3 million tonnes annually destined for the Asian market is set to commence in late 2011, with sales in the June quarter 2012. Shares in the company jumped 3% amid a flat broader Australian market.
The investments costs break down is; capex $139 million plus W/C $29 million, cash opex $66/t to FOB plus $6/t royalties, with a mine operating surplus of around $250 million annually, based on current prices, for six years.
Image of the Peculiar Knob hill and surrounding land is courtesy of the company. WPG notes that the hill will not be mined; the orebody is in the flat country adjacent to the hill.
