Geraldton Deal Considered Significant Production Milestone
GWR Group Limited (ASX:GWR) has achieved a significant key project milestone in signing a binding Port Access and Services Agreement with Mid West Ports Authority (MWPA), operator of the Port of Geraldton in Western Australia.
MWPA is the highly experienced operator and manager of the Port of Geraldton facilities having handled trade volume for 2019/20 of 14.95 million tonnes. Under the Agreement, MWPA will provide access to the port facilities and manage the loading of GWR’s product into vessels during the Stage 1 mining operations, the initial term, commensurate with those operations, expires on May 31, 2021.
“On behalf of MWPA, I congratulate the entire GWR Group Ltd team on executing this Port Access and Services Agreement with MWPA, enabling the company to take another significant step forward toward production of their C4 Iron Ore Deposit,” MWPA CEO Dr Rochelle Macdonald said.
“We are pleased to be part of the journey and look forward to continuing our relationship with GWR by facilitating the exports of the Wiluna West Iron Ore product through the Port of Geraldton.”
The Port Access Agreement enables GWR to export the Iron Ore produced at its high-grade C4 Iron deposit during Stage 1 via its priority access rights to Site 88 (which is fully serviceable and has been maintained by MWPA) and provides the ability to haul into port and ship load.
Site 88 includes a truck unloading facility, a storage shed with approximately 100,000 tonnes of capacity, and associated conveyor networks with Port Access commencing on 1st of December 2020 in plenty of time for its expected first shipment in January 2021. Both the Site 88 shed and loading/unloading facilities are fully operable and immediately ready for operations.
“The signing of this Port Access and Services Agreement is the culmination of many years of hard work and sacrifice and I am very pleased we have been able to achieve this Key Production Milestone for the loyal shareholders of GWR and to enable us to exploit the current buoyant Iron ore price and meet our target of first ore shipment in early January 2021,” GWR Chairman, Gary Lyons, said.
“Whilst the agreement is an integral part of the process to drive GWR to becoming the next ASX- listed Iron Ore producer, development operations continue with drill blasting holes within the Stage 1 – C4 Iron pit having commenced this week and mining and production operations due to commence in the first week of December 2020.
“With the C4 site works being handled by our partners PRG, the company will continue to update the market as it reaches further Key Project Milestones ahead of production of the High-grade Iron Ore C4 DSO hematite project, including completion of the haulage road,trucking and crushing agreements, offtake agreements, commencement of mining and first sales/shipment of ore.” The Port Services Agreement permits the use of the Ports ship-loading infrastructure and facilities utilising berth 5 which is the ports iron ore and sand ship loading facilities.