Cazaly unveils Freo, Esperance port plan

Cazaly Resources is proposing to export iron ore from its Parker Range project through Fremantle and Esperance after missing out on a port allocation at the Kwinana bulk terminal.

The iron ore junior said discussions were well advanced on seeking an alternative export option, after the Fremantle Port Authority decided not to allocate Cazaly any capacity at Kwinana.

The port authority announced earlier this week it would allocate 4.4 million tonnes of iron ore and 750,000t of coal capacity to Mineral Resources and Griffin Coal, respectively.

Cazaly unveiled a proposal today to export an initial 1.4 million tonnes per annum through Fremantle from March next year, then export 4.6 million tonnes per year through Esperance.

The Parker range project is near Marvel Loch in the Yilgarn region, near where Cliffs Natural Resources operates the Koolyanobbing iron ore mine.

Costs to develop the first stage of Parker Range are estimated at $59.6 million, lower than previous estimates of $78 million, a feasibility study that incorporates the Fremantle and Esperance options shows.

Cazaly plans to spend $104.4 million on the stage two expansion.

The company said it remained in talks with potential project partners about financing Parker Range.

At close of trade today Cazaly shares had slipped 2.8 per cent, to trade at 34 cents.