AUSTRALIAN Zircon hopes to start mining for mineral sands in an area south of Horsham within the next four years.
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The Wim150 Project, at Drung, a 3000-hectare exploration area, includes Pine and Taylors lakes in the north, the Western Highway through the middle and the foothills of the Grampians in the south.
A processing plant, for bulk separating and breaking down the sands into zircon, would also be based at the site.
Construction of the mine is expected to create 200 jobs, peaking at 350.
Operations, expected to be 24 hours a day, seven days a week, would create 125 permanent jobs at the processing plant and up to 125 mining contractors.
Australian Zircon chief executive officer Marty Adams said it was better than a 50 per cent chance the mine would be successful.
Mr Adams said western Victoria was a 'world-class mineral sands province'.
He said zircon would be the focus of the mining because it had the highest value and greatest demand on a world scale.
"The mining product will be exclusively for the overseas market, exported primarily to China,'' he said.
Mr Adams said a majority of the land in the Wim150 Project area was owned privately, but GWMWater and VicRoads were also landowners in the area.
"We've spoken to a lot of landowners and other interested stakeholders Horsham Rural City Council, Wimmera Catchment Management Authority and GWMWater,'' he said.
"In the main the response has been quite positive; there is a potential significant benefit for the community in terms of jobs and economic development. But obviously no project is going to have 100 per cent support.
"We understand some people are uncertain about the project and that's why we are meeting people one on one.''
Australian Zircon plans to focus on about 300 hectares at a time, starting on the south side of the Western Highway.
Mr Adams said mining on the north side of the Western Highway would start in 15 to 20 years, depending on the success of the initial project.
He said Australian Zircon planned on keep the Northern Grampians Road open, but could close smaller roads in the district.
Mr Adams said project information sessions for the public were planned in the next couple of months.
A feasibility study is due to be finished late this year.
An environmental effects statement, required by the State Government, will be ready mid 2013.
The statement details studies into the noise, dust, environmental effect on the land, and cultural, heritage, transport and radiation issues expected by the mine.
Mr Adams said the next step after finishing the study and environmental effects statement was to apply for a mining licence.
"All these steps all come with a range of conditions put in place to make sure the mine is run responsibly and to protect the interest of the stakeholders in the area,'' he said.
The Wim150 Project started in the 1980s but the Rio Tinto Group abandoned plans to mine the area because of technical difficulties associated with the fine grade of the mineral sands deposit.
But Mr Adams said technology had advanced and the project was now considered worthwhile.