GFG Alliance’s SIMEC Mining has agreed to determine the development and commercialisation potential of Havilah Resources’ Maldorky and Grants iron ore projects in South Australia.
The projects are positioned favourably with GFG’s Whyalla operations, including a continuous rail link to port, in the state’s northeast.
GFG acquired Whyalla last year following the demise of Arrium at the operations. Since securing the acquisition, GFG chairman Sanjeev Gupta has reinforced the British-owned company’s plans to expand its mining footprint in the state and around Australia.
A commercial agreement between SIMEC and Havilah would be based on results of due diligence studies and finalisation of a mutual deal structure and terms.
Havilah has provided SIMEC with several tonnes of RC drill samples from the Maldorky and Grants deposits, as well as drillcore from Maldorky, for metallurgical testing purposes.
Walter Richards, Havilah chief executive officer, backed SIMEC’s technical expertise and logistical capability at Whyalla to handle iron ore shipments from the Maldorky and Grants projects.
“Our cooperation has started well, with SIMEC Mining now in possession of all Havilah’s technical data relating to the projects, as well as representative drill chip samples and drill core that is being used for the metallurgical test work, which is now in progress,” Richards said.
“This cooperation has the potential to realise value from the iron ore component of Havilah’s multi-commodity portfolio without distracting from our primary focus on the copper growth strategy – enhanced by cobalt.”
SIMEC also operates the Iron Baron, Iron Knob and South Middleback Ranges mines 60km from Whyalla.