Rail and Port Access Confirmed for Mayoko-Moussondji Iron Ore Project
Perth, Oct 17, 2013 AEST (ABN Newswire) - Equatorial Resources Limited ("Equatorial" or the "Company") (
ASX:EQX) is pleased to announce that it has received a formal notice from the Minister of Transport of the Republic of Congo, Mr Rodolphe Adada, in relation to the planned use of state owned rail and port infrastructure servicing the Mayoko-Moussondji Iron Project ("Mayoko-Moussondji" or "the Project".
Equatorial's Managing Director and CEO, Mr John Welborn, said: "One of Mayoko-Moussondji's key advantages is the Project's access to existing railway and port facilities. The government has consistently advised Equatorial that these state owned infrastructure assets will be made available on a multi-user basis and that commercial terms will be consistently applied among companies within the mining sector. The government are fully aware of our staged development plan and the Transport Minister has confirmed that capacity will be allocated to Equatorial to enable the scale up to 2Mtpa. The strong support of the government for the Company's plans and the mining sector is very pleasing."
TRANSPORT MEETINGS
The correspondence received from Minister Adada follows a series of meetings between Equatorial's senior executive team, including representatives from WorleyParsons Services Pty Ltd, and the Republic of Congo Transport Ministry. The meetings allowed Equatorial to present the results of the completed Scoping Study (refer ASX Announcement 13 July 2013) and to define the transport infrastructure needs for Mayoko-Moussondji. The meetings included a number of workshops with both the state owned railway authority, the Chemin de Fer Congo Ocean ("CFCO") and the state owned port authority, the Port Autonome de Pointe-Noire ("PAPN"). Both the CFCO and the PAPN report directly to the Republic of Congo Transport Ministry.
MULTI-USER APPROACH CONFIRMED
Equatorial's Scoping Study investigated the potential to commence initial operations at Mayoko-Moussondji by utilising the existing railway line and exporting product through the port of Pointe-Noire. The Scoping Study also explored opportunities for synergy and efficiency through potential cooperation with Exxaro Resources Limited ("Exxaro"). Exxaro are developing the neighbouring Mayoko-Lekoumou project and have a similar staged approach to production.
The Republic of Congo Government have confirmed that the railway linking Mayoko to Pointe-Noire and the existing port facilities at Pointe-Noire will both remain state owned infrastructure. The government expects that mining companies who use these facilities, such as Equatorial and Exxaro, will be clients of the CFCO and the PAPN under terms negotiated with the Ministry of Transport and contained within the Mining Conventions that are associated with an approved Mining Licence. While the terms within a Mining Convention are specific to each particular Mining Licence, Minister Adada has confirmed in his letter that the commercial terms relating to access to the existing railway and to the existing port facilities will be consistent between mining companies.
RAIL AND PORT ACCESS AGREEMENTS CONFIRMED
The Transport Minister has confirmed that iron ore from Mayoko-Moussondji will be transported using the existing CFCO railway which links the Project to Pointe-Noire. Minister Adada has also confirmed that Equatorial will use the existing PAPN port facilities at Pointe-Noire for initial iron ore export operations. This approach is consistent with Equatorial's staged development plan for Mayoko-Moussondji and with the MOU agreements previously signed between the Company and the CFCO and the PAPN.
The formal notice confirms the Republic of Congo Government understands the needs of Equatorial's staged production plans for the Project and specifically the rail and port requirements for the Company's 2Mtpa operation. Minister Adada has provided assurances to the Company that the CFCO and the PAPN will be able to allocate available transport, storage, and ship loading capacity corresponding to Equatorial's production plans as presented to the government.
MINING LICENCE APPLICATION AND MINING CONVENTIONS
A Mining Licence Application for Mayoko-Moussondji is currently being prepared and is expected to be lodged with the government before the end of 2013. Equatorial continues to work with the Republic of Congo Government on the commercial terms for the Company's rail and port access which are expected to be finalized following granting of a Mining Licence. Further detail on infrastructure developments in the Republic of Congo will be provided by Equatorial in a Transport Infrastructure Update to be released in the coming weeks.
To View Location Maps, please visit:
http://media.abnnewswire.net/media/en/docs/76058-ASX-EQX-652897.pdf
Contact
For further information contact:
John Welborn Managing Director and CEO
Telephone: +61 8 9466 5030
Email: info@equatorialresources.com.au
Web: www.equatorialresources.com.au
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