- Venture Minerals (VMS) has cleared a “major hurdle” in its aim to produce iron ore at the Riley Mine in Tasmania
- The company has signed a road access agreement with Hydro Tasmania, which allows Venture to transport iron ore from its mine to the Port of Burnie
- The mining company is aiming to deliver the first shipment by next month
- Venture is up 25 per cent on the market this morning and is selling shares for two cents each
Venture Minerals (VMS) has cleared a “major hurdle” in its aim to produce iron ore at the Riley Mine in Tasmania.
The company has signed a road access agreement with Hydro Tasmania, which allows Venture to transport iron ore from its mine to the Port of Burnie.
The mining company is aiming to deliver the first shipment as early as July 2020.
The price for iron ore has been strong over the past months and it recently hit a 10-month high. Due to the strong price and the low cost of fuel, Riley’s economics are well above the feasibility numbers.
Iron ore prices are expected to be positive for the rest of the year, due to strong demand from the Chinese government and the growing supply concerns from Brazil due to COVID-19.
Managing Director Andrew Radonjic said the road access is an important and major part of the production of iron ore.
“Perseverance by the Riley Team has achieved a workable agreement with Hydro Tasmania on this key part of the logistics chain for the Riley Iron Ore Mine,” he said.
“The Riley Iron Ore Mine will create close to 100 jobs and will be a boost for the economy of the West Coast of Tasmania during these unprecedented times,” Andrew added.
Ventures is now looking to quickly finalise the first shipment of the ore from Riley in July.
“This is an exciting phase for the company and its shareholders as it moves from explorer to producer,” Andrew told the market.
Venture is up 25 per cent on the market this morning and is selling shares for two cents each at 12:00 pm AEST.