Flinders and Balla Balla JV to scrap alliance agreement
JOHANNESBURG (miningweekly.com) – The alliance agreement between iron-ore developer Flinders Mines and members of the Balla Balla joint venture (JV), Rutila Resources and Todd Minerals, will not be extended beyond the end of the year.
The agreement, which was signed in March 2014, would have provided Flinders’ Pilbara Iron Ore Project (PIOP) access to the JV’s proposed port and rail infrastructure facilities.
Flinders Mines said on Wednesday that the parties had the option to extend the agreement by six months if it was likely that the projects would be developed within a reasonable time after December 31.
The company previously announced the suspension of expenditure on its bankable feasibility study at PIOP until a shareholder meeting to vote on Todd Minerals’ offer for the project. The meeting will be held in August.
Flinders and Todd last week gained Foreign Investment Review Board approval for the A$65-million transaction. Todd had also launched a takeover offer for Balla Balla JV partner Rutila.
The New Zealand firm aimed to develop the 25-million-tonne-a-year iron-ore resource and the proposed Balla Balla port and railway as an integrated project.
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