Strandline Resources has executed a 10-year liquefied natural gas (LNG) supply agreement with joint venture partners, Woodside and EDL LNG Fuel to Power (WEJV) for its Coburn mineral sands project, Western Australia.
Under the WEJV contract, LNG will be supplied via road train from Woodside’s Pluto LNG truck loading facility near Karratha Western Australia to Coburn’s power generation facilities.
Coburn’s mine site power infrastructure is based on a low-cost, low-emission solution integrating LNG-fuelled generation with state-of-the-art solar and battery storage technology.
The LNG supply contract is based on a 10-year term and means the overall cost of power at Coburn will be lower than forecast in the definitive feasibility study published in June 2020.
Strandline managing director Luke Graham said the signing of another long-term operation contract with two industry leaders in the energy sector, in Woodside and EDL, provides costs reductions and delivery certainty for the Coburn project.
“With key development approvals in place, 95 per cent production pre-sold to highly reputable global customers via long term offtake contracts, major contractors appointed and development funding secured, Strandline is well on track to become Australia’s next world-scale mineral sands producer,” he said.
In addition, the appointment follows the completion of the funding required to develop Coburn through to production and cashflow.
The project funding structure includes debt financing from the Northern Australian infrastructure facility and the Bond load facility.
The WEJV contract is subject to conditions precedent regarding development of the project.