Fe Limited (ASX:FEL) has executed a suite of key Geraldton Port contracts as it continues to drive its JWD Iron Ore Project towards near-term production.
The emerging iron ore producer has inked a port access and services agreement and a port storage facility licence agreement, which covers the export, storage and handling of JWD ore over a 12-month period.
In addition to the key contracts, FEL has announced its JWD crush and screen plant is now operational, meaning final product is accumulating ahead of haulage to the Geraldton Port.
With the port agreements inked, the FEL board and the JWD joint venture have finalised their decisions to mine
Building towards first export
FEL executive chairman Tony Sage said: “We are pleased to have finalised our port arrangements and thank MWPA and MGI for their assistance in doing so.
“We look forward to working with them as we build towards our first export of JWD product.
“With final product ready to go at the mine we anticipate commencement of haulage imminently.
The key agreements
FEL’s new port access and services agreement has been signed with the Mid West Port Authority, meaning it will facilitate iron ore exports from Western Australia’s Geraldton Port.
Under the deal, the governing body stipulates FEL can in-load and out-load 800,000 tonnes of JWD product per annum from Geraldton Port’s Berth 5.
The agreement is poised to run a 12-month term, although there is room to extend with two additional 12-month options.
In addition to the access and services deal, FEL has inked a port storage facility licence agreement with Geraldton Bulk Handling Pty Ltd (GBH).
The trucking and transportation company, a subsidiary of Mount Gibson Iron Ltd, will allow the iron ore producing hopeful to use its storage facilities at the Geraldton Port.
Under the terms of the licence, FEL has non-exclusive access to the sheds, with capacity to store up to 75,000 tonnes of JWD product at any given time.
GBH will provide product handling services for FEL’s product within the facilities, with the initial agreement set to run for 12 months.
Haulage contract for JWD product
Today’s news comes just days after iron ore player secured a haulage contract with David Campbell Transport Pty Ltd.
Under the contract, the transporter will haul at least 1,200 tonnes of JWD product per day, making up around 60% of the intended initial JWD volumes.
Speaking to the agreement earlier this week, Sage said: “We are pleased to have secured the services of Campbell Transport as our lead haulage partner for JWD.
“It has been well documented that road trains are in short supply at present so to secure the services of an experienced contractor in this market speaks volumes for the FEL team and the potential of the JWD Project,” he said.