Shree Minerals inks strategic alliance deal with Grange Resources
2011-07-27 09:21:37 [Print]
Proactive Investors reported that emerging iron ore producer Shree Minerals has signed an agreement with Grange Resources to form a strategic alliance that has potential to boost the development of Shree's Nelson Bay River Iron Project and significantly increase the iron ore pellet production of Grange’s Tasmanian Operations.
Grange Resources, Australia's leading magnetite producer, sees the potential to boost production by 150,000 to 300,000 tonnes per annum, over and above the current production rate of 2 million tonnes per annum. This will be done by leveraging existing downstream processing infrastructure with minimal capital cost implications.
Shree has an opportunity to develop its Nelson Bay River Iron Project in North West Tasmania by utilizing Grange's existing infrastructure. The potential benefits to the local economy are also significant, with positive implications for both employment and the local economy.
Shree has iron ore resources at its Nelson Bay River Iron Project, north of Grange’s Savage River operations, with Indicated and Inferred Resources of 7.8 million tonnes magnetite and 1.2 million tonnes goethite hematite.
Under the terms of the memorandum of understanding signed with Shree, Grange would provide Shree with port and ship loading facilities at Port Latta for up to 400,000 tonnes of hematite per annum, as well as marketing and sales service for the hematite.
Grange will also process magnetite from Shree for pelletizing at Port Latta, adding to the current production from Savage River.
Mr Sanjay Loyalka chairman of Shree Minerals said that "This MoU facilitates an opportunity to realize synergistic outcomes from the Nelson Bay Iron River Project and Grange's Tasmanian Operations to the mutual benefit of both companies, as well as providing enhanced economic benefits in North West Tasmania."
Earlier this month Shree's in fill resource delineation drilling extended the presence of goethitic hematite mineralization at its Nelson Bay River Project, providing impetus to earn early cash flows from Direct Shipping Ore in 2011-12.
Worth over USD 200 million at current market rates for iron ore, mining of DSO material by Shree Minerals will generate strong near term cash flows and transform the company from explorer to profitable producer.
Grange Resources, Australia's leading magnetite producer, sees the potential to boost production by 150,000 to 300,000 tonnes per annum, over and above the current production rate of 2 million tonnes per annum. This will be done by leveraging existing downstream processing infrastructure with minimal capital cost implications.
Shree has an opportunity to develop its Nelson Bay River Iron Project in North West Tasmania by utilizing Grange's existing infrastructure. The potential benefits to the local economy are also significant, with positive implications for both employment and the local economy.
Shree has iron ore resources at its Nelson Bay River Iron Project, north of Grange’s Savage River operations, with Indicated and Inferred Resources of 7.8 million tonnes magnetite and 1.2 million tonnes goethite hematite.
Under the terms of the memorandum of understanding signed with Shree, Grange would provide Shree with port and ship loading facilities at Port Latta for up to 400,000 tonnes of hematite per annum, as well as marketing and sales service for the hematite.
Grange will also process magnetite from Shree for pelletizing at Port Latta, adding to the current production from Savage River.
Mr Sanjay Loyalka chairman of Shree Minerals said that "This MoU facilitates an opportunity to realize synergistic outcomes from the Nelson Bay Iron River Project and Grange's Tasmanian Operations to the mutual benefit of both companies, as well as providing enhanced economic benefits in North West Tasmania."
Earlier this month Shree's in fill resource delineation drilling extended the presence of goethitic hematite mineralization at its Nelson Bay River Project, providing impetus to earn early cash flows from Direct Shipping Ore in 2011-12.
Worth over USD 200 million at current market rates for iron ore, mining of DSO material by Shree Minerals will generate strong near term cash flows and transform the company from explorer to profitable producer.
