Fenix Resources has suspended loading of its maiden iron ore shipment after facing mechanical issues that resulted in an oil spill at Geraldton Port in Western Australia.
The bulk carrier vessel, Ya Tai 2, is now facing a likelihood of not being able to complete loading as originally scheduled.
Fenix had loaded 5004 wet metric tonnes of lump product mined from the Iron Ridge operation in Western Australia, which has a grading of more than 64 per cent iron.
Fenix stated that the vessel might require repairs at an international facility.
“Fenix entered into a sales contract with its offtake partner Sinosteel International Holding Company Limited on a free-on-board (FOB) basis, whereby the buyer has responsibility for chartering the vessel,” Fenix stated in an ASX announcement.
“Therefore, the issue regarding the Ya Tai 2 vessel is not the responsibility of Fenix.
“… Fenix is pursuing all available opportunities to export its iron ore products to cover the likelihood that the Ya Tai 2 will not be able to complete loading as originally scheduled.”
Fenix’s next export vessel is scheduled to arrive on February 24.
It has agreed to sell 50 per cent of its product from the Iron Ridge mine to SinoSteel, with the remaining 50 per cent sold to Atlas Iron.
Operations at the Iron Ridge mine are tracking well, with road transport rates exceeding 3400 wet metric tonnes a day, or around 90 per cent of planned output.
The project holds direct shipping ore deposit and is around 490 kilometres by road from Geraldton Port.