Brockman in Qube deal for new mine

Brockman Mining is set to defy the gloom in the iron ore market, announcing plans to develop its Maverick project in the Pilbara, with trucking group QUBE Holdings signed up to transport the ore to port.

Brockman said today it had entered into a heads of agreement with Qube to come up with an infrastructure solution for the company’s Maverick iron ore deposit, which forms part of its larger Marillana project.

Subject to the completion of feasibility studies, the two companies will enter into a logistics services agreement, with Qube to provide logistics services for the transport and export of Brockman’s iron ore product, which will be shipped out of Utah Point for a minimum of five years.

“The key enabler for this agreement has been the recent WA state government initiative in approving the use of performance-based standard road trains on prescribed roads in the Pilbara,” Brockman said in a statement.

The Marillana pit will comprise an initial small scale 2.5 million tonnes per annum mining operation at an estimated C1 FOB operating cost of $US35 per tonne.

Brockman is targeting construction to begin during the first quarter of next year, with commissioning expected later in 2017, and is expected to generate up to 100 full-time jobs during operation.

“As well as generating cashflows for the company, the Maverick project will also establish Brockman and the high quality Marillana product in the market place and will be a major step forward in commercialising the infrastructure solution for a larger scale operation at Marillana,” Brockman chief executive Australia Colin Paterson said.

Brockman shares closed unchanged at 1.7 cents each.