Fenix Resources secures $70m haulage and logistics contracts

Fenix Resources (ASX: FEX), via its wholly owned subsidiaries, has been appointed haulage and logistics services provider for Gold Valley’s mid-west iron ore operations.

Over the next three years, Fenix will provide transport and logistics for 3mt of iron ore product, generating more than $70m in revenue for the company.

These agreements are comprised of a haulage and logistics agreement and a port services agreement to cover the transportation and handling Gold Valley’s iron ore products from a new inland port.

Under the logistics agreement, Fenix-Newhaul will transport 3mt of iron ore from Gold Valley’s mid-west operations. This will then be delivered by Gold Valley to Fenix’s inland port terminal at Ruvidini rail siding and hauled by Fenix-Newhaul to Fenix’s facilities at Geraldton port.

In regard to the port services agreement, Fenix Port Services will provide comprehensive services required for handling and storage of Gold Valley’s ore from delivery to Geraldton port up to the point the ore has been loaded onto export vessels.

Fenix executive chairman John Welborn commented on the contracts.

“Gold Valley has recently acquired one of the largest iron ore projects in the mid-west and represents a perfect logistics partner for Fenix,” he said.

“The partnership has the potential to provide long term benefits to both Fenix and Gold Valley as both companies promote economic growth in the mid-west.

“The agreements with Gold Valley provide an immediate boost to Fenix’s revenues and are a pleasing expansion of our third-party logistics business.”