For the next three years, Fenix Resources’ (ASX:FEX) logistics arm – a combination of Fenix-Newhaul and Fenix Port Services – will deliver iron ore for regional iron producer Gold Valley (GV.)
Shipments will go from GV’s Mid-West operations to a new inland port terminal to be developed on Fenix’s landholding at the Ruvidini Rail Siding, acquired halfway through last year.
The company also owns two storage sheds at the Port of Geraldton.
It is this export destination where all ore will eventually end up, and should both parties be happy with the arrangement, there’s a chance it could be extended beyond 2027.
The new ‘inland port’ will, Fenix expects, provide “highly efficient” services for regional bulk commodity producers now that it’s able to offer maritime export solutions.
“Gold Valley has recently acquired one of the largest iron ore projects in the Mid-West and represents a perfect logistics partner for Fenix,” company chief John Welborn said.
“Ruvidini will also provide infrastructure for Fenix to store, stage, and blend ore products produced from our own mining operations.
“The Agreements with Gold Valley provide an immediate boost to Fenix’s revenues and are a pleasing expansion of our third-party logistics business.”
Fenix shares were up 4.17%.