Chief Executive visits iron ore mine in Western Australia (with photos/video)

Chief Executive visits iron ore mine in Western Australia (with photos/video)
**********************************************************

     The Chief Executive, Mr Donald Tsang, flew from Perth this morning (June 19) for a one-day visit to Karratha in Western Australia.

     The visit of the town in the Pilbara region started at an iron ore mine owned by a subsidiary of Hong Kong listed company, CITIC Pacific Limited.

     Accompanied by the Chairman of CITIC Group, Mr Chang Zhenming, and the Acting Director General of the Department of State Development of Western Australia, Mr Stephen Wood, Mr Tsang toured the mine pit and other facilities and was briefed on the mining operations.

     The project is the largest magnetite mining and processing operation under construction in Australia. It is designed to produce 24 million tones a year. Upon completion, it will ensure a stable and quality supply of iron ore to Citic Pacific's steel plants as well as other steel plant production in China.

     Later today, Mr Tsang will proceed to the North West Shelf's Visitor Centre where he will be briefed on its Liquefied Natural Gas (LNG) project, the biggest and one of the most important resource developments in Australia.

     Part of the LNG obtained by a Guangdong company from the Project is supplied to Hong Kong.

     Currently, natural gas from Western Australia produces about half of the town gas supplied to the Hong Kong households. The Hong Kong Electric's gas power plants also use LNG from Western Australia to generate some of the electricity to residents on Hong Kong Island.

     Noting that resources companies are capital intensive, Mr Tsang said that there was great potential for them to use Hong Kong's financial facilities to raise funds for their operation.

     In the past two years, Hong Kong has led the world for funds raised through Initial Public Offerings (IPO). Last year IPO funds raised in Hong Kong exceeded US$58 billion.

     Mr Tsang said Australian firms listing in Hong Kong can benefit from wealthy investors in the city and Asia as well as from institutional investors in Mainland China.  A Hong Kong listing also helps raise the profile and reputation of the firms in Mainland China.

Ends/Sunday, June 19, 2011
Issued at HKT 17:46

NNNN