Strandline Resources Limited has appointed the Woodside Energy (LNG Fuels and Power) Pty Ltd and EDL LNG Fuel to Power Pty Ltd joint venture (WEJV) as the preferred contractor to supply LNG to the power generation facilities at its Coburn Heavy Mineral Sands Project in Western Australia.
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 (provided by third parties).
Under the WEJV proposal, LNG will be supplied via road train from Woodside’s Pluto LNG Truck Loading Facility near Karratha. The proposed LNG supply contract is over a 10-year term (with appropriate pricing review and adjustment mechanisms) and enables Strandline Resources to capture energy supply cost savings relative to the Definitive Feasibility Study (DFS) published in June 2020.
The parties will now compile final contract documentation subject to the satisfaction of Coburn’s lenders and agreement between the parties.
Strandline Managing Director, Luke Graham, said the appointment establishes an important long-term relationship with two industry leaders in the energy sector.
“The company continues to move rapidly towards the development of Coburn and these key contract appointments to well-credentialed suppliers provide delivery certainty,” Mr Graham said.
The Coburn Heavy Mineral Sands 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.