Perth-based iron ore miner Grange Resources has signed an agreement with Shree Minerals which it says will pave the way towards increasing its Tasmanian iron ore pellet production by 150,000 to 300,000 tonnes per annum.
Under terms of the agreement, Grange would provide Shree with port and ship loading facilities at Port Latta in Tasmania for up to 400,000 tonnes of hematite iron ore; marketing and sales support; and process magnetite ore from Shree for pelletising at Port Latta.
Shree holds indicated and inferred resources of 7.8 million tonnes of magnetite and 1.2 million tonnes of hematite iron ore at its Nelson Bay River iron project, north of Grange's Savage River operations.
Grange Managing director Russell Clark said the agreement was an exciting development for both companies.
“With the existing infrastructure we have, there is an opportunity to assist Shree in the development of its project, and to allow Grange to increase its production at its Tasmanian Operations, leveraging existing downstream processing infrastructure with minimal capital cost implications,” Mr Clarke said in a statement.
At 1:52PM (WST) Grange's stock had lost a cent, to trade at 56.5 cents, while Shree's shares had gained 2.5 cents, trading at 16.5 cents.