Mineral Resources has declared its farm-in and joint venture (JV) agreement with Hong Kong-based Brockman Mining for the Marillana iron ore project in the Pilbara, Western Australia, unconditional.
The farm-in period has commenced following both parties executing a Mine to Ship Logistics Agreement for the transport of the Marillana iron ore product via a light-rail system from the mine site to Port Hedland. The Company is pleased to announce that on 21 January 2019. The FJVA is now unconditional, with the farm-in period now commenced.
To acquire the 50 per cent interest in Marillana, within six months the company must spend AU$250,000 on exploration and development activities on the Marillana tenements, complete the process design criteria for the processing plants, optimise its mine plan study and finalise its mine development layout plan.
Upon satisfaction of the Farm-in Obligation, Brockman and Mineral Resources will form an unincorporated 50:50 joint venture which will proceed to develop Marillana.
The Mine to Ship Logistics Agreement remains subject to a number of conditions precedent including MRL executing a State Agreement with the Western Australian Government, procuring all the leases and licences for the light rail system and port infrastructure within the inner harbour of Port Hedland, obtaining project finance to fund the construction and commissioning of the rail and port infrastructure and the company’s board making a final investment decision to proceed.
Once unconditional, the Mine to Ship Logistics Agreement provides that the company will construct, commission and operate the rail, rollingstock and port infrastructure required to transport up to 30Mtpa of iron ore from the mine site to Port Hedland and load it on to vessels for export, for the life of Marillana.