Fe Limited (ASX:FEL) has passed another key milestone at JWD Iron Ore Project near Wiluna in Western Australia’s Mid-West with the start of haulage to the port facilities at Geraldton.
The first trucks left Wiluna yesterday headed for Geraldton after mobilising to the JWD site following the completion of the port shed and access agreements late last week.
FEL executive chairman Tony Sage said: “It’s great to see the trucks starting to roll out of the JWD mine."
24/7 haulage operations
The haulage activities will operate on a 24/7 basis, with the fleet dedicated to the task ramping up progressively in coming weeks.
Loading of the company’s first shipment at the port is targeted for the second half of August.
Sage said: "Mining and crushing operations have ramped up well so the team is now focused on ensuring the same happens with haulage as we build towards our first shipment.”
Haulage operations are being carried out by David Campbell Transport Pty Ltd with the contract allowing for the transportation of at least 1,200 tonnes of JWD product per day, making up around 60% of the intended initial volumes.
At the time of signing this contract, 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.”
Port access agreement
This was followed just days later with 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.
READ: Fe Limited (ASX:FEL) secures key Geraldton Port contracts, decisions to mine at JWD Iron Ore Project finalised
FEL’s new port access and services agreement has been signed with the Mid West Port Authority (MWPA), 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.
Storage facility agreement
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 (MGI), 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.
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.”