(Alliance News) - Alien Metals Ltd on Friday said its subsidiary, Iron Ore Co of Australia Pty Ltd, has entered into a memorandum of understanding to share a bunker allocation at Utah Point in Western Australia.
Alien Metals is a London-based mining exploration and development company, focused on developing an iron ore operation in Pilbara, Australia.
Its fully-owned subsidiary, Iron Ore Co, has entered into a memorandum of understanding with Element 25 Ltd to enter an agreement for the sharing of a bunker allocation at the Pilbara Ports Authority's Utah Point export facility.
E25 is a manganese producer immediately south of Newman, Western Australia.
The memorandum provides a framework for sharing the existing E25 bunker allocation, and off-site storage capacity near Port Hedland.
It also provides partnership opportunities in relation to sub-contractor engagements targeting operational flexibility and reductions to logistics costs, and improving bunker utilisation.
Alien Metals said both companies would work towards executing a formal agreement in the first quarter of 2023.
"Execution of this MOU with E25 is an important step towards unlocking the export capacity required for Hancock," said Chair Roderick McIllree.
"We will continue to work with the Pilbara Ports Authority to obtain an independent export allocation at the Utah Point facility in line with our production profile over time, however this MOU not only gives us immediate access but also potentially paves the way for IOCA to increase its production capacity through Port Hedland."
Alien Metals shares were trading 0.9% higher at 0.47 pence each in London on Friday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Alien Metals (UFO)