A joint cooperation agreement (JCA) between Surefire Resources NL (ASX:SRN) and Mid West Ports Authority (MWPA) will determine optimal solutions for the export of magnetite concentrate from Surefire’s 100%-owned Victory Bore Vanadium Project through the Port of Geraldton.
SRN and MWPA will work together to negotiate port access, capacity reservations, ship loading, port services and product export contracts.
The agreement aims to secure port access for 1.25 million tonnes per annum (Mtpa) of export capacity.
“The execution of this joint cooperation agreement represents a step forward in our logistics chain and is another advancement of our future operation plans as we continue development of the Victory Bore Project,” Surefire Resources managing director Paul Burton said.
Preparing the logistics supply chain
Surefire is advancing the Victory Bore Vanadium Project, with a focus on developing a magnetite concentrate at the Victory Bore mine site.
The concentrate will be transported to Saudi Arabia for further processing into high-value products, such as vanadium pentoxide, ferro-vanadium, pig iron, iron oxide and titanium slag.
In December 2023, the company completed a pre-feasibility study (PFS), which highlighted favourable economic outcomes, including a net present value of US$1.1 billion at a 10% discount rate, a 42% internal rate of return, and a 2.4-year payback period over the project’s 24-year mine life.
Following the positive study results, Surefire engaged with the Saudi government and Saudi-based companies to explore process plant locations and establish a local presence to support the project’s development.
Surefire has been engaging with logistics providers to arrange the transportation of concentrate from the Victory Bore mine site to the Port of Geraldton, and subsequently to Saudi Arabia, South Korea, Japan and China, contingent on ongoing offtake discussions regarding the proposed final production.
These discussions are supported by the availability of port access, storage and ship loading facilities.
Detailed discussions with MWPA will continue.