Strandline finalises LNG agreement for Coburn

Strandline Resources has confirmed a 10-year liquefied natural gas (LNG) supply agreement to power its $260 million Coburn mineral sands development in Western Australia.

It has struck the agreement with WEJV, a joint venture between Woodside Petroleum and EDL named as the preferred LNG supplier to Coburn in November last year.

Under the agreement, LNG will be transported via train from Woodside’s Pluto LNG truck loading facility near Karratha to Coburn’s power generation facilities.

Strandline said the project’s mine site power infrastructure was based on a low-cost, low-emissions solution that integrated LNG-fuelled generation with solar and battery storage technology, with the latter provided by Contract Power Group.

Strandline said the LNG contract meant the overall cost of power at Coburn would be lower than previously forecast.

The project is fully funded, with Strandline raising $122 million from investors – the final funding required for Coburn’s development - and securing a $US60 million bond in March.

Both were in addition to a $150 million loan from federal government agency Northern Australia Infrastructure Facility, approved in June last year.

Strandline managing director Luke Graham said the company was on track towards becoming Australia’s next world-scale mineral sands producer.

Its Coburn project is expected to produce zircon, zircon concentrate, chloride ilmenite and rutile throughout a 22.5-year operating life, according to a definitive feasibility study released mid-last year.

Production is estimated to begin in the second half of calendar 2022.

Almost all of Coburn's total production revenue has been secured under offtake agreements with customers in Europe, China and the US.

Shares in Strandline were unchanged on Tuesday, closing at 20 cents.