Photo by: Bloombeg
PERTH (miningweekly.com) – The South Australian government has reached an agreement with ASX-listed Arrium to create a major multi-user port at Whyalla.
The state’s Resources Infrastructure Taskforce had previously identified Whyalla as one of three preferred options for a multi-user, bulk capacity port in the Upper Spence Gulf.
Mineral Resources and Energy Minister Tom Koutsantonis on Tuesday said the agreement with Arrium was the first critical step in providing the Upper Spencer Gulf with a major multi-user port to increase the investment attractiveness in the region.
Under a memorandum of understanding (MoU), Arrium and the state government have agreed to reach an agreement to cover third-party applications for use of Arrium’s Whyalla port and revive the Whyalla indentures to support existing and new industries and infrastructure in the Whyalla region.
“The MoU will help guide negotiations that will potentially lead to third-party access to current unused capacity at Arrium’s wholly-owed Port of Whyalla, as well as capacity-expanding investment to support future development in the Upper Spencer Gulf,” said Koutsantonis.
He added that the signing of the MoU was one of the first major outcomes to arise from the in-depth analysis conducted by the Resources Infrastructure Taskforce on preferred port options for the Spencer Gulf, which identified the potential expansion at Whyalla.
Arrium MD and CEO Andrew Roberts said the Whyalla port was a scaleable, versatile and valuable infrastructure asset with a proven capability of handling large volumes of bulk mineral cargoes.
“Arrium and the South Australian government both regard investment in the Whyalla port as a key opportunity, particularly to encourage the development of numerous magnetite deposits that exist in South Australia,” he noted.