THE BOURSE WHISPERER: Carpentaria Exploration (ASX: CAP) informed the market the Hawsons iron project Joint Venture has secured port access for up to 12 million tonnes per annum of iron ore concentrate through the existing berths at Port Pirie and has also been granted foundation customer status.
Carpentaria said Flinders Ports and the JV have agreed to jointly fund a rail-port-marine study into the best option for exporting 10 to 20mtpa of iron ore to 180,000 tonne vessels (Cape size) through Port Pirie.
Under the agreement the Hawsons JV will have a first right of refusal for export of up to 12mtpa of iron ore concentrate through the port, conditional upon further study cooperation between the parties.
Location of Hawsons iron project and Port Pirie. Source: Company announcement
Carpentaria Exploration managing director Quentin Hill said in the company’s announcement to the Australian Securities Exchange.
“Gaining port access is a very significant and important step in the development of Hawsons as the cornerstone of a long lasting, premium iron business,”
“It provides another key element of infrastructure certainty for the project.
“This is a current focus for the JV and we will continue to deliver.
“This agreement not only secures access, it will provide for the right option to increase the capacity of the port with great potential benefits for Port Pirie.”
Carpentaria explained the study will investigate the best option for iron ore concentrate export through Port Pirie including rail unloading, transfer of concentrate to the port, likely by conveyor, and then ship loading using barges.
The study will also increase engineering detail and certainty at the port to a level consistent with the other aspects of the project.
Carpentaria expects the study will commence within the month and take up to four months to complete.
“It is this existing infrastructure and a high-grade, ultra-low impurities product that puts the Hawsons project on a very firm development footing,’ Hill said.
“Especially as lower grade products attract increasingly larger discounts.”