VHM has signed a memorandum of understanding (MOU) with Yellow Iron Fleet, marking a significant step towards the development of the Goschen Project in Victoria, Australia.
This partnership is expected to span the life of the mine, which is anticipated to exceed seven years.
Yellow Iron Fleet, a solutions provider that has experience in mineral sands mining, will be instrumental in establishing the mining fleet and approach for the project.
The collaboration between VHM and Yellow Iron Fleet is set to define the contract pricing principles, paving the way for final negotiations.
Yellow Iron Fleet's responsibilities will include setting up mine site operating facilities and managing the procurement, maintenance, and operation of the mining fleet, plant, and equipment.
The company will also hire and oversee all mining personnel, from operators to technical staff and management.
In line with VHM's Environmental Management Framework, the scope of mining work will encompass mining and rehabilitation, tailings management, and loading of the mining unit plant to supply the 5mtpa [million tonnes per annum] processing plant.
Both parties are also keen to explore additional service opportunities for Yellow Iron Fleet within the Goschen Project.
VHM CEO Ron Douglas said: “I am pleased to announce VHM and Yellow Iron Fleet have entered into this agreement.
“Yellow Iron Fleet is a professional mining services contractor with extensive experience in mineral sands operations and a culture that aligns with VHM. This is another major step on VHM’s path towards commencing construction at the Goschen Project.
“This agreement underscores our shared vision of enhancing Australia’s critical minerals mining and processing capabilities, with a strong emphasis on delivering long-term benefits to the people and economy of the Loddon-Mallee region.”
The six-month MOU, which can be extended by mutual agreement, is a precursor to a formal mining partnership agreement.
This agreement will include conditions precedent that allow VHM to secure all necessary approvals, as well as debt and equity financing, and the VHM board's final investment decision for the project.
Yellow Iron Fleet CEO Andy Hoare said: “We are pleased to be partnering with VHM on this very exciting project. Our business has extensive experience within this region over many years and we are very humbled and proud to be able to contribute to the vision.
“VHM has been terrific to work with over recent months, and we look forward to a very successful partnership together.”
