Strike taps into iron ore appetite ahead of mine construction

Paulsens East hematite ridge. Image: Strike Resources

Strike Resources has garnered a strong interest for its high grade iron ore lump and fine products from the newest iron ore mine in the Pilbara region of Western Australia, the Paulsens East project.

The company will produce its first iron ore from Paulsens East in 2021 after completing its feasibility study in early November.

Strike is now advancing sales opportunities with Chinese steel mills, global iron ore traders and other marketing groups.

The company plans to send lump and fines products to the parties for independent testing before finalising the deals.

Multiple parties also expressed interest in providing project finance and/ore pre-payment for iron ore shipments, as well as taking equity participation at the project level.

“The interest that has been shown in the Paulsens East project by customers and traders has been extremely encouraging, confirming the underlying strength in the iron ore market and the recognition that Paulsens East has the potential to produce highly sought after, high-grade products,” Strike managing director William Johnson said.

“The opportunity to receive project funding and shipment prepayments from these parties will be carefully evaluated as Strike develops its overall project funding strategy.”

Strike is targeting 1.5 million tonnes a year of direct shipping iron ore (DSO) production from Paulsens East from mid-2021, with approximately 1.1 million tonnes of this to be the higher-value 62 per cent iron graded lump product.

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