WA Premier Mark McGowan has welcomed Fortescue Metals Group’s decision to go ahead with the Eliwana mine project, which includes a new mine and ore processing facility and a 143-kilometre rail spur project in the Pilbara region.

The project could create up to 1,900 jobs during construction with an estimated capital investment of about $1.7 billion.

Mr McGowan praised FMG’s announcement and the impact it could have on the local economy.

“It is business investment decisions like this that highlight the capacity of our economy, and is just another sign of our state getting back on track. Our economy continues to turn the corner and WA jobs are being created.”

The company is targeting a construction start in mid-2019, with production to start in December 2020.

A definitive feasibility study has been completed by the company, and the approvals process is now underway.

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