Highlights
- Rutila Resources (ASX:RTA, "Rutila") and its partner Todd Minerals Limited ("Todd") through their Balla Balla Joint Venture ("The JV") have entered into an Alliance Agreement (the Älliance Agreement") with Flinders Mines (ASX:FMS "Flinders") to provide Flinders with a fully integrated transportation and port handling service ("Transportation and Port Handling Service") of up to 30 million tonnes per annum ("Mtpa") for its proposed Pilbara Iron Ore Project ("PIOP").
- The Alliance Agreement contemplates the use of the proposed Balla Balla Mine Export Facility's (Ëxport Facility") surplus design capacity above the 6-10Mtpa required for development of the Balla Balla mine ("Balla Balla Mine").
- Flinders use of the surplus design capacity enables the capital costs of the Export Facility to be shared across a larger export tonnage, significantly reducing unit costs per tonne of ore and increasing the attractiveness of the respective projects.
- The JV will be the exclusive transportation and export service provider to Flinders, subject to Final Investment Descisions ("FID") being committed prior to December 2015 by both parties on their respective projects and required Government approvals.
- Under the terms of the Alliance Agreement, Flinders will reimburse The JV for all operating costs associated with the Transportation and Port Handling Service for its PIOP ore as well as a net amount of approximately $20/t of ore handled by the service and 30% of revenue from Flinders iron ore sales above A$60/t.
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