Havilah to use Port Augusta Iron Ore Export Terminal. Credit: Shane McLendon on Unsplash.

Havilah Resources has signed a memorandum of understanding (MoU) with Port Augusta Operations (PAO) to use an iron ore port and transhipment facility.

Port Augusta Operations is currently refurbishing, upgrading and performing other transhipment arrangements on the former Port Playford land and port terminal facilities near Port Augusta. It will hold a 99-year lease over the facilities and is developing the Port Playford site into a modern iron ore export terminal.

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The former Port Playford land and port terminal facilities comprises land and port terminal facilities including an existing rail loop, unloading facility, sea wall, roads and storage sheds.

After the completion of the port development, PAO will start providing iron ore port and transhipment services.

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

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

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“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% 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 encourage development of this well-located new dedicated iron ore export port on the eastern side of the Spencer Gulf.”

In November 2016, Havilah Resources signed an MoU with Consolidated Mining and Civil (CMC) for mining of the southern extension of Portia gold deposit near Australia’s Broken Hill.