Havilah Resources Ltd has signed a confidential non-binding Memorandum of Understanding (MOU) with Port Augusta Operations Pty Ltd (PAO) for future use of port and transhipment services for export of its iron ore.

PAO will hold a 99-year lease over the former Port Playford, near Port Augusta, Australia, comprising land and port terminal facilities that includes an existing rail loop, unloading facility, sea wall, roads and storage sheds. PAO is in the process of developing the port land and port terminal facilities into a modern iron ore export terminal that will involve refurbishment, upgrading and certain other transhipment arrangements. Upon completion of the port development PAO will provide port and transhipment services for iron ore, which the present MOU contemplates.

Havilah owns 100 per cent of three recent Braemar Formation iron ore discoveries, namely Maldorky, Grants and Grants Basin.

Commenting on the MOU, Havilah’s Technical Director Dr Chris Giles, said: “Port Augusta Operation’s proposed port and transhipment facility is approximately 300 km by existing rail link from Havilah’s Braemar iron ore deposits, so it potentially provides a favourable logistical solution for us.

“Our Maldorky and Grants iron ore deposits in turn are located in close proximity to the transcontinental rail line, meaning reduced capital expenditure on logistics.

“Given the almost zero overburden, soft nature of the iron ore and its amenability to upgrade to a high-yield, high-quality 65 per cent iron product, we think the availability of this new port facility will potentially help to make our iron ore deposits internationally competitive.

“We are therefore pleased to have signed this MOU and to encourage development of this well located new dedicated iron ore export port on the eastern side of the Spencer Gulf,” he concluded.

Source: www.havilah-resources.com.au

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