CuFe Ltd (ASX: CUF) has entered a 12 month contract with Fenix Port Services, a subsidiary of Fenix Resources Ltd., for port services at Geraldton Port.
The contract covers the inload and outload of CuFe’s iron ore product, provision of storage, and allocation of reserved capacity over the berth.
The company’s executive director, Mark Hancock, commented “We are pleased to sign up as Fenix’s first third party customer following their purchase of Mt Gibson’s Geraldton Port infrastructure and are looking forward to working with them and MWPA for the ongoing efficient export of our JWD product.”
“The agreements will facilitate the continued export of our high-grade iron ore at a time where iron ore prices are performing strongly. The ability of CuFe to agglomerate certain third-party tonnes with its own under the contract allows us to increase utilization of the shed, thus reducing our fixed costs and allowing shipments to build more quickly, improving our working capital cycle.”
The reserved capacity allocation is 1.4Mt, with 80% of the capacity subject to take or pay on certain of the charges, with the ability to suspend or terminate on notice in the event of suspension of operations at JWD. Certain third-party tonnes can be processed through the shed in addition to CuFe tonnes to maximize the use of the facility and reduce unit costs.
In addition to the arrangements with Fenix, CuFe has entered an updated port services and access agreement with Mid West Ports Authority (MWPA) to cover vessel berthing and related activities.
To find out more, please visit www.cufe.com.au
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