- Iron ore miner Fenix Resources (FEX) has struck a deal with WA’s Mid West Ports Authority (MWPA) to export its iron ore from the Port of Geraldton
- Under the four-year deal, Fenix will be able to export 1.25 million tonnes of iron ore per year with the help of MWPA’s Berth 5 shiploader
- This comes off the back of some major production milestones at Fenix’s Iron Ridge project and over a year of collaboration with MWPA
- Fenix Managing Director Rob Brierley says the company plans to kick off production before the end of 2020 and ship off its first iron ore early next year
- Investors have flocked to Fenix shares today, with the iron ore company up over 26 per cent and trading at 22 cents each this afternoon
Fenix Resources (FEX) has struck a deal with WA’s Mid West Ports Authority (MWPA) to export its iron ore from the Port of Geraldton.
Under the four-year deal, Fenix has locked in a port allocation of 1.25 million tonnes per year of iron ore to be exported with the help of MWPA’s Berth 5 shiploader.
Fenix has the option to extend the deal for another four years through two two-year extensions at its own discretion.
The iron ore miner has hit some major development milestone for its flagship Iron Ridge project in Western Australia over the past few months, such as securing sales deals for all iron ore from the project back in October.
Now, the company said it plans to kick off mining, crushing and screening, and road transport operations before the end of the year.
As for today’s Port of Geraldton deal, Fenix Managing Director Rob Brierley said the company has been working closely with MWPA for well over a year.
“It has now culminated into significant commercial agreements than enable Fenix to commence iron ore production and to export its first shipment of product early in the new year,” Rob said.
According to Fenix, today’s port contracts are in line with the company’s feasiblity study from November 2019.
Investors have flocked to the iron ore stock this morning on the back of the export news. At midday AEDT, shares in Fenix are up 26.47 per cent and trading at 22 cents each. The company has a $66.85 million market cap.