Kingfisher Mining Ltd (ASX:KFM) and Broken Hill Mines Ltd (ASX:BHM) have entered a legally binding mining and processing cooperation agreement aimed at accelerating the development of Kingfisher’s high-grade projects in the Broken Hill region of New South Wales.
The agreement establishes a framework under which ore from Kingfisher’s tenement portfolio could be mined and processed at Broken Hill Mines’ 100%-owned Rasp Mine processing plant, which has a nameplate capacity of 750,000 tonnes per annum.
By leveraging existing infrastructure, the arrangement is expected to reduce the capital intensity and development timelines typically associated with building standalone processing facilities.
Kingfisher's Broken Hill Project Locations.
Access to established processing infrastructure
Kingfisher said the partnership could unlock smaller or satellite deposits across its Broken Hill portfolio that may have previously been uneconomic due to infrastructure costs.
The companies’ projects are located within roughly 40 kilometres of the Rasp processing facility, including the Copper Blow iron oxide copper-gold (IOCG) prospect and the Allendale lead-zinc-silver projects.
Under the agreement, the parties may negotiate specific commercial arrangements — such as toll treatment, joint ventures or mine-gate sales of ore — if a project progresses to development.
“This agreement with Broken Hill Mines is a major milestone for Kingfisher,” managing director Chris Bittar said, adding that the partnership “provides KFM with a clear and credible pathway to production”.
“Accessing the Rasp processing plant eliminates one of the biggest hurdles for junior explorers — infrastructure capital,” Bittar added. “It allows KFM to focus its funding on active drilling and resource definition, while making even our smaller targets economically viable by removing the need for a standalone plant.”
Framework for future development
The cooperation agreement will run for 10 years and covers Kingfisher’s extensive Broken Hill tenement package.
If the parties elect to advance a specific project, they will enter an exclusive 60-day negotiation period to finalise a binding mining or processing arrangement. If no agreement is reached, Kingfisher may seek alternative partners, though Broken Hill Mines retains pre-emption rights over any proposed deal.