TNG haulage deal on track
5th July 2019
Resources Rising Stars
Strategic metals company TNG Limited has signed a binding heads of agreement with the operator of the Darwin to Tarcoola rail line, Genesee & Wyoming Australia, to haul material from the Central Australian Mount Peake mine more than 1100km to a processing facility in Darwin (reports The Sydney Daily Telegraph).
Mount Peake, 235km north of Alice Springs, will become a producer of vanadium, titanium and iron when it is developed and has received Major Project Facilitation status from the Northern Territory Government.
It is not known at this stage if the agreement will be impacted by the proposed sale of Genesee & Wyoming Australia’s US parent company to a group of investors – affiliates of both Brookfield Infrastructure Partners LP and Singapore sovereign-wealth fund GIC – for roughly $8.5 billion.
TNG says rail haulage will underpin the logistics chain transporting the magnetite concentrate to be produced by the proposed beneficiation plant at the Mount Peake mine site to the proposed TIVAN processing facility in Darwin, where TNG intends to produce high-purity vanadium pentoxide, titanium pigment and iron ore fines.
“The scope of services includes the loading of magnetite concentrate on to rail at the Adnera rail siding (proposed to be located 85km from the mine site), rail haulage from Adnera to the TIVAN facility in Darwin on the Tarcoola to Darwin rail line, and the unloading of magnetite concentrate at the TIVAN facility,” TNG said.
“Genesee & Wyoming Australia will also load and transport TNG’s final products from the TIVAN facility to the Darwin Port. “Genesee & Wyoming Australia will provide all necessary rail transport plant and equipment, including locomotives, wagons, crew vans and fuelling equipment.
“Following execution of the heads of agreement, TNG and Genesee & Wyoming Australia will work together on an exclusive basis, and commit the necessary resources to develop an optimised rail haulage strategy for Mount Peake.”
TNG’s flagship Mount Peake project received a $10 million push earlier this month from two investors in Germany as part of a $15 million capital raising.
TNG’s managing director and chief executive officer, Paul Burton, said the company views the signing of this strategic agreement with GWA as the cornerstone of its logistics chain for the Mount Peake Project and marked another important step in its development strategy.
“We are delighted to have engaged GWA as Mount Peake’s rail haulage service provider,” he said. “GWA’s presence and expertise in logistics and transportation further strengthens TNG’s global network of high quality partners.”
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