Western Australia-based Fenix Resources Limited has announced that the Australian iron ore company Atlas Iron Pty Limited will act as the marketing agent for 50 percent of the proposed iron ore produced at the Iron Ridge project in Western Australia.
In May 2006, Fenix’s subsidiary Prometheus Mining PTY Limited (PML) acquired the Iron Ridge project from Weld Range Iron Ore PTY Limited, a wholly-owned subsidiary of Atlas Iron. The agreement provided Atlas a first right of refusal to act as the exclusive marketing agent for up to 50 percent of the iron ore to be mined and sold from the project. On August 28 this year, Atlas elected to act as the marketing agent for 50 percent of production and sales and, as Fenix stated, a long-form agreement is currently being drafted.
The project is estimated to produce an annual 1.25 million mt of iron ore.
The company will finalize the product off-take agreements for the remaining 50 percent of production and sales and execute port access and port lease agreements.
Fenix expects to begin development activities at Iron Ridge later this year and the first shipment in early 2021.