Ferrowest signs MOU with Geraldton Port Authority

15/10/2007 - 14:57

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Belmot-based Ferrowest Ltd will work with the Geraldton Port Authority in planning for the receipt, storage, loading and dispatch of merchant pig iron at its planned Yalgoo Iron Project, the company has announced.

Belmot-based Ferrowest Ltd will work with the Geraldton Port Authority in planning for the receipt, storage, loading and dispatch of merchant pig iron at its planned Yalgoo Iron Project, the company has announced.

The GPA and Ferrowest will conduct joint investigations and planning into the proposed range of port services related to shipping of the Ferrowest MPI and the MOU contemplates this leading to the negotiation of a formal contract at some time in the future.

 

 

The full text of a Ferrowest announcement is pasted below

  • The Company is pleased to announce that it has executed a Memorandum of Understanding with the Geraldton Port Authority ("GPA") in respect of the Yalgoo Iron Project ("the Project").
  • Under the terms of the MOU Ferrowest and the GPA have agreed to work together to plan for the receipt, storage, ship loading and dispatch of the merchant pig iron ("MPI") that is proposed to be produced by the Project.
  • The MOU contemplates exporting the high value, low volume MPI in 42,000 tonne ship loads once a month. Geraldton Port is ideal for the shipment of MPI and is Ferrowest's preferred option regardless of the future development of the proposed Oakajee deep water port.
  • The GPA and Ferrowest will conduct joint investigations and planning into the proposed range of port services related to shipping of the Ferrowest MPI and the MOU contemplates this leading to the negotiation of a formal contract at some time in the future.
  • Flexibility is a key term of the MOU which recognises that by early 2011, when Ferrowest proposes its first shipments of MPI, the number and type of port users at Geraldton may have changed dramatically with some bulk iron ore shipment likely to be through the proposed Oakajee Port.
  • The GPA has advised Ferrowest that if, for any reason, the Oakajee Port does not proceed or is delayed, the GPA is confident that it will still have the capacity and the capability to store and load the MPI. This is largely because the MPI product does not generate dust, can be stored in the open and will not contaminate loading equipment utilised in the shipment of other products.

Yalgoo Iron Project Outline

Ferrowest Limited is developing the Yalgoo Iron Project aimed at producing merchant pig iron from the Yogi magnetite mineralisation near Yalgoo in the mid west region of Western Australia. Proposed initial production is 500,000 tonnes per annum. The plan to process the iron ore to pig iron on the mine site is premised on emerging mine site based technologies and excellent existing infrastructure servicing the site. The resulting value added merchant pig iron product will be a relatively high margin, high quality, low volume product for export to electric arc furnace steel making plants worldwide.

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