Perth-based gold explorer Gindalbie Metals Ltd has signed two agreements with the Geraldton Port Authority for access to facilities for the export of iron products from the Karara Iron Ore joint venture.
The joint venture, with Chinese company Anshan Iron and Steel Group Corporation, made the decision to export its concentrate and pellets through the Geraldton port rather than the proposed Oakajee facility in July this year "to provide maximum certainty for its development and shipment plans".
The decision comes two months after Gindalbie passed up the option of building the company's pellet plant in Geraldton, choosing instead to build in China because of cost reasons.
The full text of a company announcement is pasted below
The Board of Gindalbie Metals Ltd is pleased to announce that it has signed two Memoranda of Understanding with the Geraldton Port Authority on behalf of the Karara Iron Ore joint venture participants for access to suitable storage and loading facilities at Berth 5 and Berth 7 at the Geraldton Port for the export of iron products from its Karara Iron Ore Project in Western Australia.
The MOU's were signed in the presence of representatives of Gindalbie's Joint Venture Partner, Anshan Iron & Steel Group Corporation, China's second largest steel producer.
Under the MOU's, Gindalbie and the GPA have agreed to work together to complete formal documentation for the lease of space at Berth 5 for the storage and shipment of up to 4mtpa of hematite ore and at Berth 7 for the storage and shipment of up to 8mpta of magnetite ore. The parties will also complete documentation in respect to provision of Port Services by the GPA.
The MOU in respect to Berth 5 also envisages Gindalbie providing a throughput guarantee of 1.5 million tonnes per year for a period of 10 years commencing from the time first delivery of hematite to the Port occurs. Any shortfall on the throughput guarantee will require a payment of $2 per tonne of ore by Gindalbie to the GPA. No throughput guarantees are required in relation to Berth 7.
