Strike secures iron ore export allocation for Paulsens East Stage 1
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Strike is another step closer towards developing its Paulsens East iron ore project after receiving an export allocation at Utah Point, Point Hedland.
The export allocation from the Pilbara Ports Authority (PPA) provides 200,000t of annualised export allocation, giving the company the ability to deliver up to 400,000t of iron ore through Utah Point during 2022.
This neatly covers the planned Stage 1 output from Paulsens East, which envisages the production of up to 400,000t of iron ore from high-grade surface detrital ore and low strip ratio material.
Strike Resources (ASX:SRK) adds that this also fits in with its planned ramp up to Stage 2 production of 1.5 – 2.0 Mtpa later in 2022 through the Port of Ashburton in Onslow, which will also benefit from a much shorter haulage distance of about 235km compared with 600km to Utah Point.
“The receipt of confirmation from PPA of export allocation at Utah Point is another key milestone in the advancement of the Paulsens East Project,” managing director William Johnson said.
“Strike is now focussed on finalising contracts with key contractors and the structure and terms of project financing for Paulsens East before making a final investment decision on Stage 1 production.”
Strike’s two-stage production ramp-up for Paulsens East is aimed at delivering early cashflows by focusing initially on the high-grade areas close to surface.
This cashflow will be used to help fund the capital requirements for the second stage, which targets production of 1.5 Mtpa – 2.0 Mtpa with a four year mine life, that will export iron ore through the Port of Ashburton.
Stage 2 requires a scale up in the contracted mining fleet, expansion of mine site personnel and additional working capital requirements to facilitate the larger annualised production rate.
This article was developed in collaboration with Strike Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.