Strike secures key Pilbara iron ore approval at Paulsens East

Strike Resources has received a key approval from the WA government, another tick towards production at the Paulsens East iron ore project in the Pilbara.

The Department of Mines, Industry Regulation and Safety (DMIRS) has approved the Project Management Plan (PMP) for Paulsens East – a key regulatory approval required by Strike (ASX:SRK) to advance the project.

The approval confirms that the project site’s occupational health and safety systems satisfy the requirements outlined under WA mines safety legislation.

The company continues to work with DMIRS and other agencies to secure the necessary remaining approvals required to begin operations, including finalising responses to a series of clarification questions received from DMIRS in relation to its Mining Proposal submitted in late December last year.

An application for related Works Approval is also currently with the Department of Water and Environmental Regulation, and native vegetation clearing permits have been submitted to DMIRS.

Once the Mining Proposal and ancillary permits are approved, site works and mining activities can begin.

Strike managing director William Johnson said the company was pleased with the progress made.

“The company is grateful to DMIRS for its timely review of the PMP and remains confident of achieving its target for first shipment of iron ore in the second half of calendar 2021,” he said.

Today’s approval comes on the back of yesterday’s news out of Peru, where a binding offtake agreement was struck over Strike’s Apurimac iron ore project.

That offtake agreement included a US$2 million prepayment facility to fund first ore on ship – paving the way for Peruvian production.

Strike also recently announced plans to divest its battery metals interests into a subsidiary called Lithium Energy, which will seek to list on the ASX in its own right. Strike would retain a significant stake in that company.

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.