Our Company

Karara Mining Ltd was established in 2007 through a joint venture between China’s Ansteel Group – the Anshan Iron and Steel Group Corporation (52.16%) and Gindalbie Metals Limited (47.84%) to develop and operate the Karara mine. Ansteel also holds a 35.89% interest in GBG.

Karara produces a premium, high-grade (66-68% Fe) magnetite concentrate at a design production rate of 8 million tonnes per annum (Mtpa).

Karara Mining Water Licence Application

In 2017 the Karara Iron Ore Project achieved an annual iron ore concentrate production rate of 8 million tonnes per annum (Mtpa). To achieve this production level on a consistent basis, Karara will require a modest increase in water allocation for the Project. As part of these operational requirements, Karara has applied to the Department of Water and Environment Regulation (DWER) to increase its water licence allocation from 5 to 7 Glpa per annum Read more

Our Investment

Since project inception, Karara has made a total capital commitment of some AUD$4 billion. This includes >AUD$1 billion in new common-use infrastructure in the Mid West, comprising an 85 km rail line, a dedicated 16 Mtpa export facility in Geraldton Port, a 330 kV power transmission line and a 140 km water pipeline. This significant capital investment is delivering long-term benefits to the Mid West region and Western Australia, including direct and indirect job opportunities, community partnerships, export revenue, taxes and royalties.

Our Commitment

Karara is an important part of the Mid West region community and we are committed to continue working closely with local communities to help identify and support sustainable development opportunities in the Mid West region. Our environmental objective is to maintain the abundance, diversity, geographic distribution and productivity of flora and fauna at species and ecosystem levels.  Karara will eliminate or minimise any actual or potential impact on flora and fauna at the Karara mine-site and our regional infrastructure through proactive application of our management system, and compliance with established policies and our licence conditions.

Health and Safety Management

At Karara, we prioritise the safety, health and well-being of those involved in our business above all else. To protect and enhance the health and safety of others we:

  • Prioritise safety over production;
  • Never compromise on our health and safety standards;
  • Incorporate health and safety in the planning for any work task we do;
  • Apply our systems to identify, assess, control and manage any risks;
  • Ensure at all times that our work meets relevant standards, codes of practice and regulatory requirements;
  • Positively engage and empower all our employees and contractors;
  • Set safety objectives and measure achievement towards them to continuously improve outcomes and eliminate work-related injury and illness;
  • Collaborate and communicate with everyone in Karara about our health and safety goals and how we can achieve and improve them; and,
  • Maintain an effective health and safety management system, based on industry best standards.

We value the health and safety of all of our employees, contracting partners, site visitors and the wider community in which we operate. We are committed to a risk-based approach and a ‘zero harm’ philosophy relating to safety performance in all areas of the business.

Karara places a premium value on the environmental and heritage values of the Mid West region where we operate. Karara is a long-life operation; effective management systems and strategies to protect and enhance the environment and to eliminate or reduce any potential impacts are critical.

Environmental Benefits of Magnetite

Steel production from a premium magnetite concentrate product, as opposed to hematite iron ore, provides a range of significant global environmental benefits. Karara’s magnetite concentrate is a premium quality steel-making ingredient that is high grade (66-68%) and is very low in impurities.

The reduction of magnetite concentrate to produce steel uses less energy, produces less waste and fewer carbon emissions and costs less than steel production from the smelting of hematite iron ore.

Thermodynamic studies of the full steel production cycle – from ore extraction in the ground, to the production of finished steel – show that steel making from magnetite concentrate delivers a reduction in CO2 emissions of >100 kilograms per tonne compared to steel making with hematite fines iron ore material.

Karara: A Premium Product - High iron content, low impurities
Karara - Magnetite Concentrate Pilbara Blend Hematite Ore
Fe% (Iron) 66% 62%
SiO2% (Silica) <6.5% 3.6%
Al2O3% (Alumina) <0.2% 2.2%
P% (Phosphorus) <0.02% 0.1%

Environmental Programs

Karara has successfully applied innovation to achieve environmental best practice. A range of leading environmental programs have been developed and implemented to enhance the environment and ensure that statutory and compliance obligations are met.

Malleefowl Protection Program

The malleefowl is a rare and endangered ground-dwelling bird which inhabits semi-arid areas of Australia, including the Mid West. Since Karara’s development, the company has had a special interest in and taken active steps to improve the available knowledge and understanding of malleefowl. This has included award-winning programs such as the use of motion sensor cameras to monitor active malleefowl mounds and gain an insight into their behaviour. Other initiatives include environmental training and awareness programs, mound site monitoring and intensive surveys by the Malleefowl Preservation Group on Badja Station – a pastoral lease previously owned and operated by Karara that is now privately held.

Rehabilitation and Restoration of Threatened Species

The Mid West is home to the threatened shrub species Acacia Woodmaniorum. Karara has collaborated closely with the Department of Parks and Wildlife (DPaW) to ensure the ongoing recovery of this endangered species. Karara and DPaW have also developed a Translocation Plan to enable the species to be effectively used for the rehabilitation of land disturbed or affected by mining or exploration activities. Karara’s environmental team has collected more than 3,000 cuttings and 150 specimens of the species to further the success of major translocation and plant propagation/generation programs.

Feral Fauna Control

A targeted and year-round feral animal trapping program is operated by Karara to control feral animals and protect native flora, native fauna, habitat and food sources. Specific training and awareness programs for staff to improve understanding and successful management of feral animals around Karara are in place. The management program includes the use of motion sensor cameras at trapping sites to increase understanding about food lures and improve the success of trapping programs.

The Karara Community – Karara Village

Karara directly employs about 380 people and indirectly employs hundreds of contractor employees. During their work roster and while on site, our staff live in the Karara Village. The village can accommodate more than 1,300 people in ensuited motel-style rooms and has a host of other fully integrated camp facilities. A range of innovative measures have been implemented to provide environmental benefits and manage the environmental challenges associated with a camp of this scale.

Aquaponics

An aquaponics system, using nutrient-rich water from on-site fish ponds to enrich garden beds has been established. The system produces a multitude of vegetables for consumption by village residents, as well as native seedlings for rehabilitation work.

Biodiesel

Bulk waste vegetable oils from the Karara Village are converted into biodiesel in a purpose-built facility located at Karara’s landfill precinct. The fuel generated from this process is used to power vehicles and generators on the mine site. The recycling of waste oil provides financial and environmental benefits by reducing costs associated with waste oil transport and diesel fuel consumption. A regional waste oil collection and recycling service is also planned.

Waste Management

Karara aims to reduce waste output from the operation as much as practicable. Through close collaboration with all our contractor partners, our waste management program is able to efficiently separate putrescible and non-putrescible waste, minimise waste to landfill and to also produce high-quality compost material for use in rehabilitation work. The large-scale collection of scrap metal material and other recyclable waste is a standard approach in our operation. Funds raised through the recycling of large volumes of scrap metals and other materials are directed to the Karara Community Health Fund. Proceeds from the Fund are awarded to selected regional community initiatives to advance projects that meet community requirements and provide specific community benefits.

Environmental Policy

At Karara, we place a premium value on the environmental and heritage values of the mid-west region where we operate. To protect and enhance the environment and to eliminate or reduce any potential adverse impacts, we:

  • Assess and prioritise environmental and heritage matters associated with our activities;
  • Commit to protect the environment, through:
    1. The prevention of pollution from our operations
    2. Incorporate environmental considerations in the planning for any work task we do;
    3. Progressively rehabilitate any areas impacted by our operations and activities; and
    4. Implement programs to proactively manage regional biodiversity.
  • Never compromise on our environmental or heritage standards and obligations;
  • Communicate openly with all our stakeholders on environmental matters;
  • Engage local communities to manage country in culturally sensitive ways;
  • Partner with agencies to support research to understand the local environment;
  • Set environmental objectives and measure achievement towards them to continuously improve outcomes and maintain compliance with our obligations;
  • Apply, maintain and continually improve an effective environmental management system to enhance environmental performance;
  • Meet the minimum legal requirements and regulatory obligations that apply for our business activities.

Respect for Culture and Tradition

Karara has developed a close, collaborative and successful relationship with local indigenous people and communities, underpinned by recognition and respect for the traditions, customs, culture, dignity and connection to country of the Aboriginal people and communities where we operate.

We recognise that special factors are involved in the interaction of Aboriginal and European culture and we work closely with local indigenous groups to ensure that our operations are undertaken in a culturally acceptable manner.

Who We Are

Board of Directors & Senior Management
Gindalbie
Ansteel

Shao An Lin

Chairman

Mr Shao has worked with China’s Ansteel Group for more than 20 years. He holds a PhD in Mining and has held a host of senior positions in Ansteel’s iron ore operations, including as Chief Engineer of the Dong An Shan Iron Ore Mine, General Manager of Yan Qian Shan Iron Ore Mine and Deputy General Manager of Gong Chang Ling Iron Ore Co. In 2006, Mr Shao was appointed as General Manager of Ansteel Group Mining Company. He is also the President of the Metallurgical Mine Association of China. Mr Shao was appointed to the Karara Board in April 2013. In December 2016, Mr Shao was appointed as Chairman of Ansteel Group Mining Company and in April 2017 he was appointed Vice President of Ansteel Group Corporation.

Li Zhiqi

Director

Mr Li has extensive knowledge of management in the Chinese mining industry. He is qualified as a Senior Economist in material management and has held senior positions in Ansteel’s Iron Ore operations, including as General Manager of Fu Zhou Wan Clay Plant. He has held senior roles with Ansteel Group Mining Company including as Deputy General Manager of Affiliated Company; General Manager of Supply and Marketing Company; and General Manager of Finance. In 2016, Mr Li was appointed as Deputy General Manager of Ansteel Group Mining Company. Mr Li was appointed to the Karara Board in June 2016.

Zhang Zhaoyuan

Director and Chief Executive Officer

Mr Zhang is an accomplished senior executive in the Chinese mining industry. He holds a PhD in Mining Engineering and has held various senior positions across Ansteel’s Iron Ore operations, including as General Manager of Qi Da Shan Iron Ore Operations and Deputy General Manager of Qi Da Shan Processing Plant. He has worked for the Ansteel Group Mining Company for more than 30 years and was appointed as Deputy General Manager of Ansteel Group Mining Company in 2015. Mr Zhang was appointed as the CEO of Karara Mining in October 2015.

Shi Lei

Chief Financial Officer (CFO)

With a career spanning more than 30 years with Ansteel Group Mining Company, Mr Shi has extensive experience in finance and cost management for mining operations. He has held various senior positions in Ansteel Group Mining Company, including Superintendent Finance and Assistant Mine Manager for Ansteel Group Mining Company’s open pit iron ore operation, Deputy Mine Manager of Dengta limestone mine and Manager Finance for the Gong Chang Ling Iron Ore Operation. In 2014, he was appointed as Manager of the Finance Shared Service Centre for Ansteel Group Mining Company. He is a Finance Committee member of the Metallurgical Mine Association of China. Mr Shi was appointed as the CFO of Karara Mining in January 2017.

Zhu Changjiang

Director and General Manager-Operations

Mr Zhu has over 20 years of experience with Ansteel Group of China. He holds a Mechanical Engineering degree from North Eastern University of China and has held various senior maintenance positions across Ansteel Group Mining Company’s iron ore operations including as Deputy Manager - Mechanical Department; Manager - Pelletizing Plant; and General Manager Processing for the Gong Chang Ling Iron Ore Operation. In 2016, Mr Zhu was appointed as Manager Operations of Ansteel Group Mining Company. He is a Council Member of Metallurgical Mine Association of China. In June 2017, Mr Zhu was appointed to the Karara Board; he was appointed as General Manager Operations for Karara Mining in August 2017.

Christopher Gerrard

Company Secretary

Christopher joined Karara in May 2010 as Company Secretary. He provides leadership for the company’s legal and regulatory affairs, ethics and compliance programs and corporate governance activities including litigation, contractual, fiscal, property and other regulatory/legislative issues. Mr Gerrard previously served as General Counsel for Austal Limited, an ASX-listed global shipbuilder. He has held various senior executive and legal roles in government service and the private sector. He graduated from the Australian National University with Honours in Law and Economics. He began his career as an Associate for Justice RJA Franki of the Federal Court of Australia and is admitted as a Barrister and Solicitor of the High Court of Australia. He is a Certificated Member of the Governance Institute of Australia.

Gindalbie Metals Ltd (47.84%)

Gindalbie Metals Ltd is an independent ASX-listed Australian resources company based in Perth, Western Australia. Instrumental in the development phase of Karara, Gindalbie is focused on the development of other projects in its portfolio, including the Mt Gunson base metals project in South Australia. Ansteel holds a 35.89% interest in Gindalbie. Please visit Gindalbie's website for further information.

Anshan Iron and Steel Group Corporation (52.16%)

Anshan Iron and Steel Group Corporation (the Ansteel Group) is located in the Liaoning Province of Northern China and is one of the largest steelmakers and iron ore miners in the country. It produces about 40Mtpa of steel, with plans to increase production to >50Mtpa and deliver major industry rationalisation in China. Ansteel provides underpinning support for Karara, including long-term demand for the supply of high-quality ore; ongoing offtake agreement arrangements; and funding support. Please visit Ansteel's website for further information.

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