The Pilbara Ports have notified Red Hawk Mining (ASX:RHK) that an annual throughput allocation of 1 million tonnes per year is forecast to become available for allocation in 2026 at Utah Point Bulk Handling Facility in Western Australia.
Red Hawk, which has a market capitalisation of $151.85 million, says the forecast throughput allocation is consistent with its Pre-Feasibility Study (PFS). The PFS project that in the first year the export volume will total 1.2 million tonnes, increasing to 5 million tonnes over five years.
The company will continue working with Pilbara Ports and other commercial users of Utah Point, with the aim to secure additional port capacity in line with the proposed project ramp-up schedule.
Managing Director Steven Michael says the company has been in discussions with Pilbara Ports for the past year to secure a port allocation, which is the only multi-user bulk commodities berth in Perth.
“The berth has a 24 million tonnes per year capacity catering predominantly for iron ore juniors and other smaller bulk mineral export companies,” Michael says.
“The notification from Pilbara Ports of forecasted available capacity is a positive step for the development of the Blacksmith Project and provides Red Hawk with a clear roadmap for securing the forecasted allocation capacity as it becomes available.
“Red Hawk has also commenced discussions with existing users of Utah Point to procure existing capacity allocations if possible, and potential third-party multi-commodity port developers.”
The company recently increased the direct shipping ore mineral resources at Blacksmith to 243 million tonnes at 59.3% iron.
Michael says this makes Blacksmith the “largest hematite iron ore project in the Pilbara held by a junior”.
“Locking in port capacity of at least 5 million tonnes per year over the long-term is essential to maximise the value of this resource and Red Hawk will continue to look for long-term, large tonnage export opportunities,” he says.
Red Hawk’s securing of the forecast annual throughput allocation is subject to several milestones and timeframes. These include the company confirming the final investment decision and executing a definitive agreement between itself and Pilbara Ports.
Red Hawk Mining is focused on developing its Blacksmith Iron Ore Project in the Pilbara region of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Red Hawk Mining
