27/06/2014 - 10:38

Greenlight for IOH port agreement

27/06/2014 - 10:38

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Iron Ore Holdings has executed lease agreements with the Dampier Port Authority for the development of a port facility at Cape Preston East.

IOH managing director Alwym Vorster.

Iron Ore Holdings has executed lease agreements with the Dampier Port Authority for the development of a port facility at Cape Preston East. 

The port facility will underpin an independent export supply chain solution for the planned Buckland project, which also includes an 8 million tonnes per annum mine at Bungaroo South and a new 196-kilometre private sealed haul road.

“IOH is progressively moving closer to realising its objective of delivering a fit for purpose, fully integrated mine, road and port development with an initial capacity of 20mtpa, at significantly lower capital cost per annual tonne than other proposed developments in the West Pilbara,” IOH managing director Alwym Vorster said.

“Development will include a capital efficient transshipping facility using road haulage solutions which avoids dredging of the ocean floor.”

The construction lease involves the development of a 25km port access road, a stockyard area and a 1.4km trestle jetty with a conveyer and shiploader system.

The company said a modern, purpose-built self-propelled transhipping vessel would efficiently transfer ore to cape size vessels anchored offshore. 

Associated infrastructure such as a desalination plant, power generators, accommodation facilities, administration buildings and a truck maintenance area will also be constructed. 

“Access to port space is a rare and valuable commodity in the Pilbara, and with the approval of IOH’s Cape Preston East port facility, the WA government has created the potential for our company to unlock numerous new mine developments in the West Pilbara with significant long term benefits for the state,” Mr Vorster said.

IOH said according to the operating lease, the company has exclusive management rights over its leased area at Cape Preston East for an initial term of 20 years. 

Third party access to the port facility may be implemented either through direct commercial agreements with IOH or pursuant to a third party access regime agreed with the Dampier Port Authority

IOH said it intends to actively engage with other explorers and miners in the West Pilbara, with the aim of aggregating additional tonnage to fully untilise the infrastructure and maximise the economic benefits from the project. 

IOH last traded at 92 cents per share at 10:30am WST. 

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