Talga Resources signs Swedish port MoU

THE BOURSE WHISPERER: Swedish-focussed explorer Talga Resources (ASX: TLG) has signed a Memorandum of Understanding (MOU) in regards to the development of the company’s graphite assets in Sweden.

Talga has signed a non-binding MOU with the Port of Luleå (PoL) regarding the allocation of port space allowing up to 80,000 tonnes of graphite concentrate or more advanced products to be exported from Sweden.

 

Location map of Talga’s graphite projects and established transport
infrastructure in northern Sweden. Source: Company announcement

 

PoL is the sole operator of the public harbour in the north of Sweden.

Talga said it considers the possibility of securing a port as its primary export solution to be a key component of economic studies it is currently conducting on its Nunasvaara graphite project in Sweden’s Kiruna mining district.

“Since commencing exploration and development in Sweden in June this year, Talga has achieved a number of significant operational milestones over a short space of time,” Talga Resources managing director Mark Thompson said in the company’s announcement to the Australian Securities Exchange.

“The selection of the Port of Luleå as our export gateway for the company’s high-grade graphite assets is the right option to achieve our future export objectives.

“If we do not have port access, we will not have a graphite project.

“This MOU therefore represent an important milestone for Talga’s shareholders.”

According to Talga the MOU provides a framework between the parties towards securing a binding Port Terminal Services Access Agreement (PTSAA) in the future and utilising the integrated sea-logistics system at Luleå.

Talga is targeting 2015 for its first production.

Luleå is the largest bulk goods port in Sweden with the annual volume of goods handled exceeding nine million tonnes.

Approximately 700 vessels call at the Port of Luleå every year, many with a loading capacity of more than 55,000 tonnes each.

Commodities handled include coking coal, magnetite, steel and bentonite. The PoL operates year round.