WPG Resources has committed to the startup of the Peculiar Knob iron ore project located in South Australia. Set to begin in 2011, the development decision is conditional upon the completion of a USD 120 million funding package from Deutsche Bank in addition to USD 82 million in equity. The project also requires the approval of a port development application and a mining and rehabilitation plan. WPG plans to start exports of iron ore at an initial rate of 3.3 million mt/year by the second half of 2011. They already have a MOU in place with potential customers for late 2011 and plan to negotiate binding offtake contracts for 2011. The company secured vacant land at Port Pirie to construct a 7 to 8 million mt/year iron ore storage and export facility, two months after securing a 10 year access agreement to Berth 7. The additional capacity will be available to other users and provide port access to WPG’s proposed Hawks Nest iron ore project and Penrhyn coal project. The company is currently waiting on federal government approval to proceed on these projects. Both sites stretch into the Woomera Prohibited Area in South Australia where long standing mining restrictions due to military missile testing are presently under review. Peculiar Knob is 770km northwest of Adelaide with a certified resource of 19.2 million mt at a grading of 64% Fe.