Mining company Havilah Resources has signed a memorandum of understanding (MoU) with Port Augusta Operations (PAO) for the use of a port and transhipment services for iron ore export.
The agreement comprises a 99-year lease over port terminal facilities at Port Playford, near Port Augusta in South Australia. The port includes an existing rail loop, unloading facility, sea wall roads, and storage sheds.
PAO will develop the land and terminal facilities to be a modern iron ore export terminal. This will involved refurbishment, upgrading, and other transhipment arrangements. PAO will then provide port and transhipment services for iron ore.
Technical director of Havilah, Chris Giles, said that the upgrade to the port will enable a rail connection from the Havilah’s iron ore deposits in northern South Australia.
“Port Augusta Operation’s proposed port and transhipment facility is approximately 300km by existing rail link from Havilah’s Braemar iron ore deposits, so it potentially provides a favourable logistical solution for us,” said Giles.
Giles also noted that rail will be a key connection between the mine and the port.
“Our Maldorky and Grants iron ore deposits in turn are located in close proximity to the transcontinental rail line, meaning reduced capital expenditure on logistics.”
Havilah owns three iron ore deposits, Maldorky, Grants, and Grants Basin. The deposits, which rise up to the surface, have the potential to be a 65 per cent iron product with high yields, according to a statement from Havilah.
The news comes after the former Northern power station near Port Augusta was sold to be developed into a port for CU-River Mining, as reported by the ABC in February. These developments would be the first time that commercial shipping would come to Port Augusta in 50 years.