Alien Metals Ltd (AIM:UFO, OTC:ASLRF) said its Iron Ore Company of Australia (IOCA) subsidiary has negotiated a deal to share a facility at Utah Point in Pilbara with Australian miner Element 25 (E25).
The facility, which is in proximity to Port Hedland, will handle iron ore produced from Alien’s Hancock operation in Pilbara, Western Australia, ahead of shipping.
IOCA and E25 will work towards executing a formal agreement in the first quarter of 2023, the company said, though Alien is also holding discussions with the Pilbara Ports Authority over an independent allocation at Utah Point.
In a statement, Roderick McIllree, Alien Metals chairman, commented: "Execution of this MOU with E25 is an important step towards unlocking the export capacity required for Hancock.
“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 to more than our stated 1.2mt/pa."
E25 is a manganese producer located immediately south of Newman, Western Australia.