Strandline Resources (ASX: STA) has taken a key step towards development of its Coburn mineral sands project in Western Australia by selecting Woodside and EDL to provide a fully integrated energy solution for the project.
The parties have signed a non-binding proposal for the development of a 27MW integrated trucked LNG, storage and power station facility, comprising gas and diesel back-up generators combined with state-of-the- art solar and battery technology.
The Woodside and EDL Joint Venture (WEJV) was formed to provide clean, reliable and affordable LNG to market. This world-first trucked LNG to hybrid renewable microgrid project will see EDL bring its turnkey expertise to the Project’s power station and LNG storage and re-gasification facilities, with LNG supplied from Woodside’s Pluto LNG truck loading facility near Karratha.
It is expected that contract documentation, in the form of a 15-year power purchase agreement, will be finalised over the coming months in readiness for the commencement of construction.
The WEJV solution provides Strandline with a long-term safe, reliable and highly efficient energy solution for Coburn.
Coburn is a world-class long-life mineral sands deposit hosting exceptional zircon and titanium mineral sands products. The project benefits from being situated in the well-established mining jurisdiction of Western Australia, close to key road, port and services infrastructure.
The company recently completed a DFS on Coburn, showing the Project will generate strong financial returns with a pre-tax NPV of A$551m (USD:AUD 0.72, 8% discount rate), an IRR of 32%, Life of Mine (LOM) EBITDA of A$1.9b (average annual EBITDA of A$86 million) and an attractive revenue-to-operating cost ratio of 2.2, based on TZMI’s commodity price forecast.
In parallel with securing major construction and operations contracts for Coburn, the company is advancing product offtake and project financing activities, including the potential debt financing from Northern Australian Infrastructure Facility (NAIF).
