PERTH (miningweekly.com) – Mineral sands developer Strandline Resources has finalised a liquefied natural gas (LNG) supply agreement for its Coburn project, in Western Australia.
The ASX-listed company on Tuesday announced that it had inked a ten-year LNG supply agreement with a joint venture (JV) between energy major Woodisde and EDL LNG Fuel to Power.
Under the JV contract, LNG would be supplied from Woodside’s Pluto LNG truck loading facility, near Karratha, to Coburn’s power generation facilities.
Strandline told shareholders that the LNG supply contract was based on a ten-year term, meaning the overall cost of the power at Coburn would be lower than forecast in the definitive feasibility study in 2020.
MD Luke Graham said the signing of another long-term operational contract at Coburn provided cost reduction and delivery certainty for the project.
“With key development approvals in place, some 95% of production pre-sold to highly reputable global customers via long-term offtake contracts, major contractors appointed and development funding secured, Strandline is well on track to become Australia’s next world-scale mineral sands producer.”
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.