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Trucks at the Karara magnetite project. Picture: Claire Tyrrell/The Countryman.
Trucks at the Karara magnetite project. Picture: Claire Tyrrell/The Countryman.

UPDATE 1.15pm: Shares in Gindalbie Metals were firmer after the iron ore miner announced first magnetite concentrate production from its Karara project in the State's Mid-West.

Gindalbie said the product represented the beginning of a six-month ramp-up towards its targeted production of 8mtpa.

The first fully commercial shipment of magnetite concentrate is expected by late December or early January.

Gindalbie managing director Mr Tim Netscher said work was now continuing in earnest to fully complete all sections of the concentrator plant and to get production ramped up to a steady-state level.

"Production of magnetite concentrate from Karara is not only a great milestone for the company, but also for the state of Western Australia," he said.

"We are taking low-grade iron ore (36 per cent Fe) and through downstream processing turning it into a high value premium (68 per cent Fe) iron product, opening up a whole new export market for the State."

Karara is a 50/50 joint venture between Gindalbie and Chinese steelmaker Ansteel, which also has a 36 per cent stake in the company.

Gindalbie shares closed up one cent, or 3.39 per cent, at 30.5 cents.