Strandline Resources Ltd has taken another key step towards development of its Coburn mineral sands project in Western Australia by executing a 10–year LNG Supply Agreement (LSA) with Woodside Energy (LNG Fuels and Power) Pty Ltd and EDL LNG Fuel to Power Pty Ltd in joint venture (WEJV). Under the WEJV contract, LNG will be supplied via road train from Woodside’s Pluto LNG Truck Loading Facility near Karratha, WA to Coburn’s power generation facilities.
Coburn’s mine site power infrastructure is based on a low–cost, low–emission solution integrating LNG–fuelled generation with state–of–the–art solar and battery storage technology provided by Contract Power Australia. The LNG supply contract is based on a 10–year term (with appropriate pricing review and adjustment mechanisms) and means the overall cost of power at Coburn will be lower than forecast in the Definitive Feasibility Study (DFS) published in June 2020.
This appointment follows completion of the funding required to develop Coburn through to production and cashflow. The project funding structure includes debt financing from the Northern Australian Infrastructure Facility (NAIF) and the Bond loan facility, together with equity proceeds as announced on 31 March 2021. The WEJV contract is subject to conditions precedent regarding development of the project.
Strandline Managing Director Luke Graham saidthe signing of another long–term operationalcontractwith two industry leaders in the energy sector, in Woodside and EDL, provides costs reductions anddelivery certaintyfor the Coburn project. “With key development approvals in place, ~95% production pre–sold to highly reputable global customers via long term offtake contracts, major contractors appointed and development funding secured, Strandline is well on track to become Australia’s next world–scale mineral sands producer,” Graham said.
Woodside is the pioneer of the LNG industry in Australia and a leading Australian natural gas producer. The company led the development of the LNG industry in Australia and is applying this same pioneering spirit to solving future energy challenges. The Pluto LNG Truck Loading Facility at Woodside’s Pluto LNG Project can provide clean and reliable supplies of low–emissions LNG for use as fuel in remote power generation and transport in Western Australia. EDL is a leading global producer of sustainable distributed energy. Since 2007 EDL has been the Western Australian market leader in trucked LNG, safely delivering more than one billion litres from Karratha to the Kimberley in over 7,000 journeys.
