Posted on 22 Nov 2023
Australian iron ore producer Fenix Resources has inked a deal to purchase and export up to 500,000 tonnes of direct shipping ore (DSO), Kallanish notes.
The firm says in a statement that it has executed definitive documents with 10M Pty Ltd (10M) for the exclusive right to purchase and export the iron ore from the high-grade Twin Peaks direct shipping iron ore project within a 24-month period.
Under the agreement, 10M will supply 500,000 tonnes of +60% Fe direct shipping ore from the Woolbung Peak deposit, which forms part of the Twin Peaks, for a fixed mine gate payment plus a profit share payment upon sale.
Fenix will be responsible for haulage, storage, port services, ship loading, marketing and sales utilising the company’s expanded port capacity and logistics capabilities.
The deal will provide an immediate boost to Fenix’s iron ore production and revenues with first shipment of iron ore from Woolbung Peak expected in early 2024.
The ore purchase agreement represents a partnership between Fenix and 10M which uses Fenix’s unique fully integrated haulage and port logistics capabilities to unlock value from an otherwise stranded Mid West iron ore asset.
“The 10M ore purchase agreement is an immediate boost to our export tonnages while we work to bring the Shine iron ore mine and the Beebyn-W11 deposit into production alongside our flagship Iron Ridge iron ore mine,” its chairman John Welborn says.
Source:Kallanish
