An $800 million expansion of a magnetite mine in South Australia's north will create up to 1300 jobs, the state government says.
CU River Mining Australia will look to initially triple annual production from the existing Cairn Hill mine near Coober Pedy to three million tonnes with a longer-term plan to lift that to 15 million tonnes.
"This long-life project shows that unlocking the full potential of our magnetite assets can create hundreds of jobs for the far north," Regional Development Minister Geoff Brock said on Thursday.
CU River, a privately owned group, took control of the Cairn Hill mine in late 2014, initially spending $20 million to restart production in June last year.
In September it reached its initial goal of exporting 900,000 tonnes of iron ore to China.
It believes its close cross-cultural relationship with Chinese interests will be crucial to its future success.
"Companies really need to spend time in China themselves to make connections and gain respect from the Chinese," logistics manager Mark Hoepfl said.
"I think we've been working very well with them; they're on the journey with us."
The South Australian Chamber of Mines and Energy says the Cairn Hill expansion is another good news story from the state's resources sector.
"Expansion of the Cairn Hill mine forms part of an exciting pipeline of discoveries and projects that support a sustainable and profitable resources sector, contributing to the South Australian economy," chief executive Rebecca Knol said.
Mineral Resources Minister Tom Koutsantonis says the CU River expansion sends a clear message to international investors that South Australia remains a reliable and attractive supplier of mineral exports.
"Step by step, South Australia is fulfilling its destiny to become a leading exporter of iron ore to the world," he said.
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