Fenix Resources Limited’s scheduled maiden iron ore shipment from the Port of Geraldton has been delayed due to mechanical issues with the bulk carrier vessel, Ya Tai 2.
Fenex owns the Iron Ridge Project, which is located approximately 600 kilometres north-northeast of Perth and roughly 350 kilometres southwest of the Port of Geraldton.
A Feasibility Study in November 2019 for the Iron Ridge Project included a maiden Ore Reserve of 7.76 million tonnes at 63.9 per cent iron (FE). This underpinned a forecasted annual production of 1.25 million tonnes. The project officially commenced production in December 2020.
Fenix outlines that it previously entered into a sales contract with its offtake partner Sinosteel International Holding Company Limited on a free-on-board (FOB) basis, whereby the buyer has responsibility for chartering the vessel. Therefore, the issue regarding the Ya Tai 2 vessel is not the responsibility of Fenix.
The company states that it has ample product ready for loading and has another scheduled shipment scheduled for loading on 27 February, after completion of a mandatory 14-day COVID restriction.
Fenix has also reported that its operations at Iron Ridge are progressing well with road transport rates recently exceeding 3,400 wet metric tonnes a day, around 90 per cent of planned output.