Sheffield in deal for Derby Wharf

Sheffield Resources has entered into an access agreement for the use of the bulk handling facility at the Derby Wharf as an export hub for mineral sands mined from its $271 million Thunderbird project.

The agreement with the Shire of Derby-West Kimberley was signed just a week after Sheffield announced it had reduced pre-production costs at Thunderbird by 26 per cent, and had extended the mine’s life to 40 years.

Managing director Bruce McQuitty said the agreement confirmed Sheffield as the preferred proponent for the bulk handling facility.

“This binding agreement allows exclusive access during the definitive feasibility study to complete all work required to submit a development application and to complete terms of a sublease agreement by June 30 2017,” he said.

“Securing port capacity is a significant step towards development of Thunderbird. Efficient and unconstrained access to export infrastructure is essential to establishing a cost-effective mine-to-port logistics chain for our products.”

Mineral sands mined from Thunderbird will be transported by a fleet of four quad roadtrains to the Derby Wharf for storage and export.

The wharf was previously used by Western Metals for the export of up to 500,000 tonnes per annum of base metal concentrates from the company’s Lennard Shelf operations.

Sheffield shares were up 2 per cent to 50 cents each at 10am.