PERTH (miningweekly.com) – Mineral sands developer Strandline Resources has inked a 15-year electricity supply agreement for its Coburn project, in Western Australia.
The company has signed the supply agreement with Contract Power Australia, a subsidiary of Pacific Energy, which would see Contract Power build, own, operate and maintain the power generation and liquefied natural gas (LNG) storage and regasification facilities for the project.
The purpose-designed power infrastructure will be based on a low-cost, low-emissions solution integrating natural-gas-fuelled generation with solar and battery storage technology, and would allow Strandline to capture energy supply cost savings relative to the 2020 definitive feasibility study.
The power station will have a maximum demand capacity of 15 MW and average consumed power of some 10 MW, with natural gas to be supplied under an industry-standard long-term LNG supply agreement, and trucked to an on-site storage and re-vaporation facility provided by Contract Power.
Strandline earlier this week signed the final binding offtake agreement for its Coburn project with titanium dioxide producer Venator Materials, covering all of the expected rutile production at Coburn.
Some 90% of the project’s revenue is now underwritten by binding sales contracts with major customers.
Located 240 km north of Geraldton, the A$260-million Coburn project has ore reserves of 523-million tonnes and an initial mine life of 22.5 years at a planned average mining rate of 23.4-million tonnes a year.