PERTH (miningweekly.com) – ASX-listed Venture Minerals has struck an offtake agreement with Singapore’s Prosperity Steel United Singapore over its Riley iron-ore mine, in Tasmania.
Under the terms of a binding term sheet, Prosperity has agreed to purchase all of the product produced at the Riley mine over the first two years of the operation, based on the current reserves.
Venture told shareholders that the binding term sheet was a major milestone towards restarting operations at Riley, with an updated mining study due next, to allow a decision to mine within the coming weeks. Should a positive decision be taken, iron-ore production is expected to start from the fourth quarter of 2019.
“The signing of the offtake agreement with a group of the caliber of Prosperity has strengthened the likelihood of the Riley mine moving into production,” said Venture MD Andrew Radonjic.
“Venture looks forward to delivering the first shipment to our new partners at a positive time in the iron-ore price cycle. In addition, the company will soon be delivering the outcomes of an updated scoping study on the higher-grade development scenario for the Mount Lindsay tin/tungsten project.”
Riley was placed on care and maintenance in 2014 on the back of weak iron-ore prices.
The project is fully permitted and has a reserve of some 1.8-million tonnes, grading 57% iron, with some 90% of the project’s equipment still on hand.