Hawsons Iron Ltd (ASX:HIO) has struck a deal to purchase three contiguous parcels of land suitable for developing an export facility for the Hawsons Iron Project at Myponie Point on South Australia’s eastern Spencer Gulf.
The two-year option agreement gives Hawsons the right to purchase the three blocks of land totalling 1,000 acres, for $14 million at any time within two years of the execution date.
MoU for Myponie Point Port
The deal underpins an earlier memorandum of understanding (MoU) with Flinders Ports Pty Ltd to cooperate on the design, construction and operation of a Myponie Point Port for the export of 20 million tonnes per annum of magnetite concentrate.
Managing director Bryan Granzien said the agreement strategically underpinned a memorandum of understanding (MoU) executed earlier with Flinders Ports Pty Ltd, moving Hawsons ever closer to its goal of supplying high-grade products, essential for decarbonising steel-making.
“This agreement secures a crucial export site required for the planning and development of our 20 million-tonnes-per-annum project and importantly provides significant additional space to accommodate expansion of the Myponie Point Port into a multi-user, bulk commodity export facility,” he said.
Deep-water port facility and slurry pipeline
“Now that we have identified our port location, planning and detailed design work can continue on the deepwater port facility and the underground slurry pipeline from Broken Hill, including all approvals and land access agreements along the 392-kilometre pipeline route.”
Granzien said Hawsons stood to gain from an opportunity to participate in the future growth of the Myponie Point Port as its ‘cornerstone’ customer by securing additional space required to support development and expansion.
Myponie Point Port is expected to be ready to start exporting Hawsons’ unique 70% iron Hawsons Supergrade® magnetite concentrate by the second half of 2024.