CuFe Ltd (ASX:CUF) continues to make headway at the JWD Iron Ore Project in WA, in which it operates and holds a 60% interest.
The company has struck a deal with Main Roads WA to upgrade the intersection of the JWD mine access road and the Goldfields Highway — a move CuFe says will deliver community and cost benefits.
In addition, a new crushing and screening circuit has been installed and commissioned, and the improved reliability and increased plant capacity is resulting in higher processing rates.
CuFe's offtake partner, Glencore PLC (LSE:GLEN), has also executed a sale agreement for 360,000 wet metric tonnes of JWD product with a leading South-East Asian steel mill.
What’s more, the company’s iron ore price hedge portfolio continues to help it manage the commodity’s price volatility.
“Win-win” for operation and community
CuFe executive director Mark Hancock said of the developments: “We appreciate Main Roads WA’s support with regards to this access agreement.
“The ability to utilise larger capacity road trains is a ‘win-win’ for the operation and the community, providing us with more confidence to reliably meet the haulage requirements of the mine in a more efficient and cost-effective manner.
“This, in turn, will help us to feed the strong demand we are seeing from off-takers for the JWD product, as highlighted by our recent 360,000-wet-metric-tonne sale to a leading South-East Asian mill.”
Main Roads deal
With the support of the Shire of Wiluna, CuFe will work with Main Roads WA to upgrade this key regional road intersection. This, in turn, will facilitate the introduction of 60-metre road trains to the JWD haulage fleet.
The 60-metre road trains represent the latest technology and carry roughly 30% more than standard quad road trains.
The improved productivity not only results in a reduced cost of haulage, but also reduces the number of road trains required for the haulage task, thereby benefiting the Wiluna and Geraldton communities.
CuFe has already trialled a 60-metre road train between the mine and the Geraldton Port, so it’s already confident their introduction will deliver on the targeted operational and community benefits.
As part of the agreement with Main Roads, the company will fund the intersection upgrade where the trucks enter the Goldfields Highway from the JWD mine access road, just south of Wiluna.
The cost of this work is not expected to be significant and is not required to be completed in advance of the 60-metre road trains commencing on the route.
Next, the haulage contractor will apply and receive permits for the road trains to be introduced.
New crushing plant
CuFe has also installed a new crushing and screening plant at JWD to improve reliability and processing capacity.
The plant has successfully completed commissioning and achieved its ramp-up, having consistently demonstrated productivity in excess of the targeted production rate of 2,000 wet metric tonnes of lump product per day.
Sales agreement
Glencore, CuFe’s offtake partner, has entered a sales contract with a leading South-East Asian steel mill. The mill has previously purchased JWD product and is looking to secure regular supply.
The contract covers 360,000 wet metric tonnes (give or take 15%), scheduled for delivery between May and December 2022. This equates to six shipments over the next eight months.