Havilah Resources has signed a memorandum of understanding with Port Augusta Operations (PAO) to use the latter’s terminal for iron ore exports.
PAO is upgrading land and port facilities in the area formerly known as Port Playford, located near Port Augusta, after signing a 99-year lease for them.
According to a statement by the Australian miner, the port is approximately 300 kms from Havilah’s existing rail link and will help make its iron ore prices more competitive since export costs will decline.
Havilah’s Braemar iron ore deposits are located closest to the proposed terminal, while its Maldorky and Grants iron ore mines are close to the transcontinental rail line, which will be used to deposit material to the PAO terminal. The proximity of all three mines to PAO make the agreement a cost-effective logistics solution for Havilah’s export strategy, Dr. Chris Giles, Havilah’s technical director, said in a statement.
The companies did not disclose when Havilah will begin shipping from the port.
PAO’s new terminal is being developed on the eastern side of Australia’s Spencer Gulf and includes an existing rail loop, roads, storage shed, unloading facilities, and a sea wall., PAO is additionally upgrading the existing transshipment facilities, including exclusive transshipment facilities for iron ore.