Chief executive officer Jim Beyer told the Global Iron Ore and Steel Forecast conference yesterday that the company was committed to its roots but was also looking for additional coking coal and direct shipping ore opportunities.

“When we sit and talk at the board, there is no doubt we believe in the story of steel and the future that it’s got,” Beyer said.

“And while we’re looking very closely at DSO opportunities, we also see another hot commodity in the coking coal side as being something that we need to consider.”

The company had nearly $A280 million in cash at December 31 which leaves the company with a number of options going forward to fund existing projects or new finds.

While WA will remain the heart of Mount Gibson, the company is turning its sights to other parts of Australia for coking coal options to complement the existing business.

“Our primary focus is DSO in our backyard in Western Australia and certainly in the Mid West but we are looking elsewhere at other opportunities to grow the business,” Beyer said.

In the near term Mount Gibson has its work cut out for it with the ramp-up at Koolan Island and plans to finalise and commence development at the T1 deposit at Tallering Peak.

Still, the Extension Hill site remains the “jewel” for Mount Gibson, particularly with Extension Hill South, Gibson Hill and Iron Hill nearby to possibly extend the project beyond the predicted mine life.

Whatever projects Mount Gibson decides to tackle, Beyer said he remained confident in the future of iron ore.

“I think to declare iron ore as dead is way too early,” he said.

“There is absolutely no doubt that on the demand side China still has a long way to go with the urbanisation and infrastructure requirements and clearly, as urbanisation continues, the secondary demand – the consumer demand – will build as well.”

Mount Gibson shares were up 1.8% to 56c this morning.