MinRes defers Marillana agreement

Mineral Resources and Brockman Mining have deferred the agreement for key infrastructure works at their $300 million Marillana iron ore project by up to a year, as MinRes seeks more time to satisfy preconditions.

The joint venture partners announced the start of construction for Marillana’s rail and port system under their agreement, will be extended from end of 2019 to the end of 2020.

As a result of the delay, the rail and port system is now scheduled be operational by the conclusion of 2022, according to the agreement.

The numerous preconditions that need to be satisfied include obtaining a Western Australian state railway agreement, gaining adequate project finance, and the company approving a final investment decision.

Marillana’s light-rail system is designed to transport production from the site, which is located approximately 100 kilometres north-west of Newman, to a port at Port Hedland for shipping to China.

The Chris Ellison-led MinRes said project has a forecast capex of $300 million, with an initially production capacity of 20 million tonnes per annum, with potential to increase to 30mtpa.

Under the terms of the farm-in and JV, MinRes is required to spend just $250,000 on exploration and development activities on the Marillana tenements to acquire a half stake in the project with Hong Kong-based Brockman.

The two JV partners entered into an agreement last July.