Join our daily newsletter At The Bell to receive exclusive market insights
- Hawsons Iron (HIO) and Flinders Ports take the next step toward developing a greenfield port at Myponie Point Port on South Australia’s eastern Spencer Gulf
- The parties signed a binding agreement to develop and operate the proposed port, formalising the terms of a non-binding Memorandum of Understanding signed in April
- The scope of the agreement has been expanded to include evaluation of lower tonnage options using existing rail and port infrastructure
- If finalised, the agreement will see Flinders Ports construct, own and operate the port while Hawsons would participate in future growth as the port’s cornerstone customer
- HIO shares are up 14.3 per cent and trading at 12 cents at 11:42 am AEDT
Hawsons Iron (HIO) and Flinders Ports have taken the next step toward developing a greenfield port at Myponie Point Port on South Australia’s eastern Spencer Gulf.
The parties signed a binding agreement to co-operate on the potential development and operation of a new port, formalising the terms of a non-binding Memorandum of Understanding signed in April.
The scope of the initial agreement has been expanded to include evaluation of lower tonnage options using existing rail and port infrastructure and possibly scaling production and export options over time.
It comes as Hawsons Iron pushed the brakes on its 20 million tonne per annum bankable feasibility study (BFS) for its namesake project.
Managing Director Bryan Granzien said the agreement would enable the parties to assess and agree on the optimum achievable port to support a revised BFS if required, including consideration of potential short and long-term solutions for the preferred site at Myponie Point.
“This milestone agreement with an operator of Flinders Ports’ calibre is an important step to our goal of meeting demand for high-grade products so essential for decarbonising steel making,” Mr Granzien said.
Under the terms of the agreement and subject to final transaction documents, Flinders Ports would construct, own and operate the proposed Myponie Point Port – reducing the Hawsons Iron project’s capital requirements, while enabling Hawsons to participate in future growth as the port’s ‘cornerstone’ customer.
HIO shares were up 14.3 per cent and trading at 12 cents at 11:42 am AEDT.
