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Legend International Holdings Signs MOU with P&O Trans Australia to Service North Queensland Operations

Published: 21:43 12 Aug 2009 BST

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No matter how world markets perform the basic need to feed the world remains high. As the population growth continues and highly populated countries such as China and India reach economic prosperity, the agriculture sector is expected to benefit. Companies such as Potash Corporation of Saskatchewan (TSX: POT), Agrium (TSX: AGU) and Mosaic (NYSE: MOS) that provide exposure to the agriculture sector now feature in almost all institutional investors portfolios.

High crop yield actually requires three ingredients namely nitrogen (for plant growth), phosphorous (for plant and root development) and potassium (drought resistance). It is against this backdrop that the signing of a Memorandum of Understanding between the OTC Bulletin Board listed Legend International Holdings (OTCBB: LGDI) and P&O Trans Australia for haulage and handling services associated with Legend's Georgina Basin Phosphate project becomes an important development.

This MOU will guide contract negotiations worth approximately $40 million during the first year of operations and up to $3bn over the life of a twenty year agreement. According to Managing Director of P&O Trans Australia (POTA), Mr. Paul Digney, POTA was determined from the outset to offer Legend a fully integrated package that demonstrated the core competencies of creativity and innovation in the delivery of supply chain management solutions.

Speaking on behalf of Legend, President and CEO Mr. Joseph Gutnick cited POTA's commitment to flexibility as a key factor in the appointment. Mr Gutnick said: "This is a staged project, commencing late 2009/early 2010 with an annual volume of between 0.5 and 1 million tonnes per annum which, with the construction of several key components of infrastructure will rapidly increase to up to 5 million tonnes per annum."

POTA was the only bidder to offer a packaged suite of services, designed to flow seamlessly between Stage 1 packaged material and the shift to bulk haulage during Stage 2. POTA's bid included road cartage from D-Tree and Paradise North tenements, both located approximately 160 kilometres from the deposit to the rail head in Mount Isa, rail haulage from Mount Isa to Port of Townsville and various storage and material handling tasks.

Mr Gutnick said that Legend has been in extensive negotiations with QR Network, the below rail manager on the Mount Isa to Townsville network and he was confident that capacity would be made available. "We have been assured that there is in excess of one million tonnes per annum capacity available right now on the line and also that QR welcomes the introduction of a second above rail operator." said Mr Gutnick.

About Legend


Legend is engaged in the development of its phosphate interests in the Georgina Basin, Queensland, Australia including Paradise (formerly Lady Annie and Lady Jane), D-Tree, Thorntonia, Lily Creek, Quita Creek, Sherrin Creek and Highland Plains. The company plans to produce an average of 5 million tonnes per year of phosphate rock concentrate of 30%+ P2O5 by 2012, thus becoming one of the world's leading producers of phosphate rock. Legend is led by Joseph Gutnick, a prominent Australian mining industry entrepreneur, who has overseen some of Australia's largest and most prestigious resource discoveries.

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