Strandline Resources Limited has taken an important step towards the development of its 100 per cent owned Coburn Heavy Mineral Sands Project in Western Australia by appointing Contract Power Australia as preferred contractor to build, own and operate (BOO) the power generation facilities for the project.
Coburn’s purpose-designed power infrastructure is based on a low-cost, low-emission solution integrating natural gas-fuelled generation with state-of-the-art solar and battery storage technology.
The proposed power solution enables Strandline to capture energy supply cost savings relative to the Definitive Feasibility Study (DFS) published in June 2020.
Coburn’s power station will be located near the mineral separation plant and is suitable for a maximum demand capacity of 16 megawatts (MW) and average consumed power of approximately 10 MW.
Natural gas will be supplied by others under an industry-standard long-term LNG supply agreement and trucked to an on-site storage and re-vapourisation facility supplied by Contract Power.
The LNG then feeds a set of efficient engine generators on an N+1 basis and has approximately 30 per cent solar (renewable) penetration for the major stable loads.
Generation is at 11 kilovolts (kV) with step up to 22kV for power transmission to the project loads across the mine site.
As preferred contractor, the parties will now compile final contract documentation to the satisfaction of Strandline and Coburn’s lenders.
The contract is based on a 15-year BOO (and maintain) commercial model with fixed and variable payment regime for power consumed over the term.
This appointment follows Strandline’s recent A$18.5 million equity raising to advance early works development activities while finalising the balance of project funding.
Strandline continues to make strong progress towards definitive finance documentation and conditions precedent for the NAIF A$150 million loan facility  and is advancing discussions to secure a commercial debt tranche expected to stand alongside the NAIF funding.
Strandline Managing Director Luke Graham said the appointment marked another key step in its strategy to bring Coburn into production and establishes an important relationship with Contract Power.
The project is forecast to have an annual production of 34 kilotonnes (kt) of premium zircon, 54kt of zircon concentrate, 110kt chloride ilmenite and 24kt rutile; to supply approximately 5 per cent of global zircon market and a strong foothold in the Ti chloride feedstock market.
 The Northern Australia Infrastructure Facility (NAIF) made an investment decision to provide a A$150 million loan facility for the development of Coburn, subject to finalisation of finance documents and satisfaction of customary conditions precedent to first drawdown. Refer to Strandline’s ASX announcement 22 June 2020.