IOCA executes MOU for iron ore bunker allocation at Pilbara Ports Utah Point
Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration and development Company, is pleased to announce that its wholly owned subsidiary, Iron Ore Company of Australia Pty Ltd (“IOCA”) has entered into a Memorandum of Understanding (“MOU”) to enter in an Agreement for the sharing of bunker allocation at the Pilbara Ports Authority’s Utah Point export facility with Element 25 Ltd (ASX Code: E25) in relation to the Company’s Hancock iron ore project (“Hancock”) located in the Pilbara, Western Australia.
@AlienMetals agreement for IOCA to access existing bunker allocation and export capacity at the Pilbara Port Authority #UFO will process #ironore from Alien’s Hancock Pilbara operation, Western Australia, before shipping.https://t.co/8or9382mCw https://t.co/nGgKnTtNWR pic.twitter.com/GK5MEztNNQ
— Share_Talk ™ (@Share_Talk) November 4, 2022
Highlights:
· The MOU provides a framework for:
o sharing of the E25 existing bunker allocation at Utah Point,
o sharing of offsite storage capacity within proximity of the Port Hedland Port,
o partnership opportunities in relation to:
§ sub-contractor engagement targeting operational flexibility and reductions to logistics costs; and
§ improve bunker utilisation and overall net tonnage throughput.
o reviewing investment opportunities to both parties’ benefit.
· IOCA and E25 will work towards executing a formal agreement in Q1 2023.
· E25 is a manganese producer located immediately south of Newman, Western Australia.
· Discussions continue with the Pilbara Ports Authority regarding an IOCA independent allocation at Utah Point.
Roderick McIllree, Chairman of Alien Metals, commented: “Execution of this MOU with E25 is an important step towards unlocking the export capacity required for Hancock. We will continue to work with the Pilbara Ports Authority to obtain an independent export allocation at the Utah Point facility in line with our production profile over time however this MOU not only gives us immediate access but also potentially paves the way for IOCA to increase its production capacity through Port Hedland to more than our stated 1.2mt/pa.”
Justin Brown, Managing Director of E25 commented: “The opportunity to work with Alien Metals to share subcontractors, optimise transport infrastructure utilisation and overheads as well as overflow storage will assist both parties to reduce logistics costs. The opportunity may also present E25 with an opportunity to charter larger vessels which will further reduce sea freight and improve throughput rates. The cooperation will further assist in providing E25 the ability to put additional material from our planned expansion and optimisation of Butcherbird through Utah Point. Ultimately, we also see the opportunity to reduce our carbon footprint in pursuit of our goal to deliver zero carbon manganese to the fast-growing EV battery market.”
Key Terms of the MOU
The non-binding MOU provides a framework for the parties to negotiate an agreement for IOCA to access existing bunker allocation and export capacity at the Pilbara Port Authority’s Utah Point export facility at a rate of more than one (1) shipment per calendar month.
The MOU also provides the framework for IOCA to access up to 40,000t of stockpile offsite storage at the E25 facility near Utah. This provides the opportunity to “sprint” additional tonnage to the port whilst loading thereby increasing total tonnes shipped and decreasing the costs overall of each shipment.
Pilbara Ports Authority – Utah Point Export Facility
As announced on 24 October 2022, the Company continues to engage with the Pilbara Ports Authority (PPA) for its own direct access to the Utah Point Public User Facility at Port Hedland, Western Australia for export of iron ore, located approximately 425km from Hancock. High level meetings were recently held in Perth and Port Hedland to highlight the economic potential of Hancock and the need for port allocation. Recent communication from the PPA has continued to encourage the Company that it will receive an export allocation at this facility in line with its production profile for next year. This agreement with E25 provides a pathway to early port access whilst this process is completed.
For further information please visit the Company’s website at www.alienmetals.uk or contact:
Alien Metals Limited
Rod McIllree, Executive Chairman
Bill Brodie Good, CEO
Tel: +44 (0) 20 7138 3204
