Korab Resources gets export capacity at Darwin

2017-11-09

Nov. 8, 2017 - Diversified explorer Korab Resources has inked a non-binding heads of agreement (HoA) with the Darwin Port operator to export some 500 000 t/y of magnesite rock through the port.

The HoA included sub-leasing of the land, access to various port facilities, the use of loaders and other equipment, and provided the basis for the final port agreement that would allow for exporting the magnesium carbonate rock through Darwin.

“This is a major milestone in the process of commercialisation of the Winchester magnesium carbonate deposit,” Korab chairperson Andrej Karpinski said on Wednesday.

A 2015 prefeasibility study into the Winchester project estimated that the project would require a capital investment of about A$4-million to produce 800 000 t/y over a mine life of 14 years, to generate an aggregate earnings before interest, taxes, depreciation and amortization of A$395-million.

Based on a mineral resource estimate of 12.2-million tonnes of magnesite rock, production is expected to start at 200 000 t/y of saleable magnesite rock in the first year of operation, increasing to 800 000 t/y by year three.