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Western Plains Resources In First Sales Of Iron Ore From Peculiar Knob
作者：25 发布时间：2010-06-07 文字大小：【大】【中】【小】
Emerging South Australian iron ore producer Western Plains Resources (ASX: WPG) has executed agreements with customers for its Peculiar Knob project south of Coober Pedy in South Australia.
The agreements are for the sale of a total of 9 million tonnes of iron ore fines over five years, commencing in H2 2011.
The agreements have provisions to extend the life of the sales arrangements beyond five years.
It is WPG’s and its customers’ intention that the non binding MOUs "will be converted into binding sales contracts when the commitment to project development is taken."
Sales will be made at market prices on a quality adjusted basis, using a mix of CNF and FOB pricing.
It is likely that all of the project’s entire production for the first five years will be the subject of similar MOU agreements with other customers, within the next few weeks or months.
WPG and Flinders Ports Pty Ltd entered into an MOU agreement for the handling, storage and shiploading of iron ore from Peculiar Knob earlier this year.
The two parties agreed to develop a detailed set of protocols backed by appropriate contracts between them for the export of ore, before the end of H1 2010.
WPG still expects this timetable will be met. WPG intends to take the decision to commit to project development at Peculiar Knob in H2 2010. Export sales of at least 2-3 million tonnes per annum are expected to commence in H2 2011.
The company believes Peculiar Knob is the highest grade undeveloped direct shipping ore (DSO) iron ore deposit in Australia, with the lowest levels of the key impurities alumina and phosphorus.
The company has completed a Bankable Feasibility Study for the development of the Peculiar Knob and Buzzard DSO deposits.
Initial resource development will be directed towards the Peculiar Knob, Buzzard and Tui haematite deposits (combined resource of 37.4 million tonnes @ 62.6% Fe) that the company plans to bring into production at 4.5 Mt per year of DSO, for a ten project mine life.
WPG intends to develop the Peculiar Knob deposit as a Direct Shipping Ore (DSO) mine, supplying high grade ore to the Asian market, at a rate of up to 3 million tonnes per annum.
The company has set a strategic goal of commencing production during 2011. A mining lease has been granted and the company is well advanced with infrastructure planning.
Sourced from www.proactiveinvestors.com.au
The agreements are for the sale of a total of 9 million tonnes of iron ore fines over five years, commencing in H2 2011.
The agreements have provisions to extend the life of the sales arrangements beyond five years.
It is WPG’s and its customers’ intention that the non binding MOUs "will be converted into binding sales contracts when the commitment to project development is taken."
Sales will be made at market prices on a quality adjusted basis, using a mix of CNF and FOB pricing.
It is likely that all of the project’s entire production for the first five years will be the subject of similar MOU agreements with other customers, within the next few weeks or months.
WPG and Flinders Ports Pty Ltd entered into an MOU agreement for the handling, storage and shiploading of iron ore from Peculiar Knob earlier this year.
The two parties agreed to develop a detailed set of protocols backed by appropriate contracts between them for the export of ore, before the end of H1 2010.
WPG still expects this timetable will be met. WPG intends to take the decision to commit to project development at Peculiar Knob in H2 2010. Export sales of at least 2-3 million tonnes per annum are expected to commence in H2 2011.
The company believes Peculiar Knob is the highest grade undeveloped direct shipping ore (DSO) iron ore deposit in Australia, with the lowest levels of the key impurities alumina and phosphorus.
The company has completed a Bankable Feasibility Study for the development of the Peculiar Knob and Buzzard DSO deposits.
Initial resource development will be directed towards the Peculiar Knob, Buzzard and Tui haematite deposits (combined resource of 37.4 million tonnes @ 62.6% Fe) that the company plans to bring into production at 4.5 Mt per year of DSO, for a ten project mine life.
WPG intends to develop the Peculiar Knob deposit as a Direct Shipping Ore (DSO) mine, supplying high grade ore to the Asian market, at a rate of up to 3 million tonnes per annum.
The company has set a strategic goal of commencing production during 2011. A mining lease has been granted and the company is well advanced with infrastructure planning.
Sourced from www.proactiveinvestors.com.au
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