Strandline Resources Limited has taken a key step towards the development of its Coburn Mineral Sands Project in Western Australia by selecting Woodside and Energy Developments Limited (EDL) to provide a fully integrated energy solution for the project.
The parties have signed a non-binding proposal for the development of a 27-megawatt integrated trucked liquified natural gas (LNG), storage and power station facility, comprising gas and diesel back-up generators combined with state-of-the-art solar and battery technology.
The Woodside and EDL Joint Venture (WEJV) was formed to provide clean, reliable and affordable LNG to market.
The world-first trucked LNG to hybrid renewable microgrid project will see EDL bring its industry expertise to the project’s power station and LNG storage and re-gasification facilities, with LNG to be supplied from Woodside’s Pluto LNG truck loading facility near Karratha.
It is expected that contract documentation, in the form of a 15-year power purchase agreement, will be finalised over the coming months in preparation for the commencement of construction.
The WEJV solution is expected to provide Strandline with a long-term safe, reliable and highly efficient energy solution for the Coburn Mineral Sands Project.
Coburn is a large zircon and titanium-rich deposit, located approximately 240 kilometres north of the major minerals port of Geraldton in Western Australia. Key project approvals for Coburn are already in place (environmental, native title, heritage and mining).
Strandline recently completed a Definitive Feasibility Study on Coburn, which indicates that the project will generate strong financial returns with a Pre-Tax NPV of A$551m (USD: AUD 0.72, 8 per cent discount rate) and an Internal Rate of Return of 32 per cent.
Coborn is a Large Ore Reserve of 523 Million tonnes at 1.11 per cent Total Heavy Mineral underpins an initial mine life of 22.5 years at the planned mining rate of 23.4Mtpa.
In parallel with securing major construction and operations contracts for Coburn, the Company is advancing product offtake and project financing activities, including the potential debt financing from Northern Australian Infrastructure Facility.
Strandline’s Managing Director, Luke Graham, said that they are pleased to establish the relationship with Woodside and EDL to provide a turn-key, low-cost fuel supply and generation solution for the Coburn Project.
“The Company looks forward to finalising this agreement as well as other major construction and operations contracts over the coming months,” he said.