Gindalbie Metals shares on the rise
Shares in Gindalbie Metals have shot up by nearly 9 per cent after the company announced an expansion of its $ 2 billion Karara project and the appointment of a new chief executive.
However, the company also said yesterday that costs at the Karara Iron Ore Project in Western Australia would rise by nearly a third.
The company announced it would investigate expanding the project from its start-up production level of 10 million tonnes of iron ore a year to 16 million tonnes a year.
Gindalbie’s joint venture partner and largest shareholder, China’s Angang Steel Company Ltd ( Ansteel), has a 50 per cent stake in Karara.
A t 1 1 . 5 4 a m G i n d a l b i e Metals shares had risen eight cents, or 8.42 per cent, to $ 1.03.
‘‘ This shows how robust a project Karara is and why we believe this investment in an immediate expansion of production capacity is clearly justified with the additional capital outlay to be rapidly repaid,’’ Gindalbie chairman George Jones said.
The costs of the project would increase by 30 per cent due to the resources boom pushing up material and labour costs.
The company’s new chief executive is Tim Netscher, replacing Garret Dixon.