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VHM has entered into a memorandum of understanding (MoU) with Yellow Iron Fleet for mining services at the Goschen rare earths and mineral sands project in Victoria.
The two parties are expected to enter into a mining partnership agreement during the six-month MoU period. A mining partnership agreement would extend for a period equal to the life of mine of the company’s Area 1 – set to be in excess of seven years, unless terminated by the parties prior.
A mining partnership agreement would see Yellow Iron Fleet be responsible for the establishment of all mine site operating facilities, the procurement and maintenance of mining fleet, plant, and equipment, and the recruitment and management of all mining operators, technical staff, and management.
In accordance with VHM’s environmental management framework, the scope of mining at Area 1 will involve mining and rehabilitation activities, tailings management activities, and loading of the mining unit plant to feed the five-million-tonne-per-annum processing plant.
If a mining partnership agreement is entered into, it will contain appropriate conditions precedent. These conditions will enable VHM to obtain all the necessary approvals for the Goschen project, debt and equity financing, and VHM board approval for a final investment decision.
“Yellow Iron Fleet is a professional mining services contractor with extensive experience in mineral sands operations and a culture that aligns with VHM,” VHM chief executive officer (CEO) Ron Douglas said.
“This is another major step on VHM’s path towards commencing construction at the Goschen project.”
“This agreement underscores our shared vision of enhancing Australia’s critical minerals mining and processing capabilities, with a strong emphasis on delivering long-term benefits to the people and economy of the Loddon-Mallee region.”
Yellow Iron Fleet CEO Andy Hoare echoed Douglas’ sentiments.
“Our business has extensive experience within this region over many years and we are very humbled and proud to be able to contribute to the vision,” he said.
“VHM have been terrific to work with over recent months, and we look forward to a very successful partnership together.”
Left to right: Andy Hoare YIF CEO and Owner, Ron Douglas VHM CEO, Bernie Hyde VHM EGM Projects and Trent Everest YIF GM.
Published by Australian Resources & Investment
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