West Perth-based Fenix Resources has won a haulage and logistics services contract with iron producer Gold Valley, valued at $70 million.
West Perth-based Fenix Resources has won a haulage and logistics services contract with iron producer Gold Valley, valued at $70 million.
The company today released a statement to the market, announcing Fenix-Newhaul and Fenix Port Services were appointed as service providers for Gold Valley’s iron ore operations in the Mid West.
Fenix said the services would generate more than $70 million in additional revenue to Fenix over the contract's three-year term.
The agreements between Fenix and Gold Valley comprises logistics and haulage services and port services, with Fenix to provide transport and logistics for 3 million tonnes of iron ore from Gold Valley’s operations.
Fenix executive chairman John Welborn said the company was building a significant third-party logistics business, which would create the opportunity to increase its production and export capacity.
“Gold Valley has recently acquired one of the largest iron ore projects in the Mid West and represents a perfect logistics partner for Fenix,” he said.
“The partnership has the potential to provide long-term benefits to both Fenix and Gold Valley as both companies promote economic growth in the Mid West.”
In its ASX statement, Fenix said work with Gold Valley was expected to start in about June, after Ruvidini rail siding property had been recommissioned as an inland port.
“The establishment of an inland port at our Ruvidini rail siding property will create another valuable strategic infrastructure asset for Fenix,” Mr Welborn said.
“An inland port will create the immediate ability to flexibly manage tonnage stored and shipped through Fenix’s facilities at Geraldton Port, expanding the ultimate throughout capacity of these on-wharf facilities.
“Ruvidini will also provide infrastructure for Fenix to store, stage, and blend ore products produced from our own mining operations as well as providing the potential for future access to rail haulage into Geraldton and facilitating significantly more efficient and safer road haulage solutions by cutting travel times and enabling better coordination and management.”
Fenix shares were trading at 24 cents each, down 2.08 per cent as of 4.10pm AEDT today.
