THE Fremantle Port Authority is planning to expand its ‘outer harbour’ operations at Cockburn Sound after signing export deals with iron ore miner Mineral Resources and coal miner Griffin Coal.
THE Fremantle Port Authority is planning to expand its ‘outer harbour’ operations at Cockburn Sound after signing export deals with iron ore miner Mineral Resources and coal miner Griffin Coal.
Under the deals, 4.4 million tonnes of iron ore and 750,000t of coal will be exported annually from a currently run-down finger wharf at Kwinana.
Mineral Resources has agreed to spend $44 million upgrading the wharf facilities, including the design and construction of a new product handling system.
“The facility that Mineral Resources will construct at the Kwinana Bulk Terminal will dramatically increase the efficiency and capacity of the existing terminal,” company chairman Peter Wade said.
Fremantle Ports chief executive Chris Leatt-Hayter said that, subject to receiving the necessary works approval, the intention was to complete the construction work before the end of 2011.
“Ensuring a high level of local content will be a top priority and rigorous attention will be paid to environmental management aspects during the construction and operational phases,” he said.
Fremantle Ports said it was also concluding negotiations with Griffin Coal to enable the export of 750,000t of coal annually over four years through the Kwinana Bulk Terminal. Griffin has been exporting coal through this terminal since 2007.
The port authority said the new arrangement with Griffin Coal “will cover the transition period until planned new facilities for handling coal are developed at Bunbury or elsewhere”.
The new facilities are expected to support the expansion of Griffin’s export capacity, following its acquisition by Indian company Lanco Infratech, which intends to increase coal production from 4mt a year to 15mt.
The Mineral Resources deal was a blow for another aspiring iron ore miner Cazaly Resources, which had been seeking to lock in the same port access deal for ore from its planned Parker Range mine. Cazaly has been forced to pursue alternative export arrangements, with Esperance the most likely alternative.
Mr Wade said the port deal was a key development in the commercialisation of its Carina open pit mine, located in the central Yilgarn near Koolyanobbing.
“The state royalties generated by the increased volume of products exported through the Kwinana as well as our commitment to sourcing labour and fabrication from within the state will deliver significant benefits to the economy,” Mr Wade said.
Mineral Resources said it planned to commence continuous production at Carina in the fourth quarter of 2011.
