Economic Benefits

It is estimated that CITIC Pacific Mining's Sino Iron project will add nearly A$75 billion in revenue to the Australian economy over the next 25 years.

Spending on operations is expected to exceed A$30 billion over the current life of the project and it will generate export revenue of at least A$3 billion a year.

The mining and processing of magnetite is a high-value creating activity when compared to the sale of Direct Shipping Ore (DSO). Based on current economic analysis, production and sale of concentrates and pellets from the Sino Iron project will add nearly double the value to the Australian and Western Australian economies than would be created by the sale of DSO.

Successful implementation of this project could also facilitate developments of magnetite iron ore projects and major gas projects in the immediate vicinity.

The project also represents a significant linkage with China, fostering closer ties between the governments of Western Australia and China, which in turn could trigger interest in other direct investment from China into the State or nationwide.

The monetary value of the direct benefits is measurable by the total local expenditure and the amount of taxes and royalties paid within the State of Western Australia. As with other large industrial and mining projects in Australia some capital expenditure components will be directly imported or supplied from overseas; however a sizeable proportion is expected to be sourced from local suppliers or service providers. Similarly, most of the gross operating expenditure will be consumed locally within the State. Further information can be found in our Suppliers section.