Sherwin Iron Limited and the Darwin Ports Corporation have entered into a non-binding Heads of Agreement to negotiate, develop and enter into formal agreements for the lease and use of land and facilities by Sherwin at Darwin’s East Arm Wharf.
The Board expects that shipments of iron ore from the company’s Roper River tenements can commence in 2013 through the EAW facilities if suitable agreements can be put into place with corporation.
The proposed East Arm Wharf facilities will enable Sherwin to initially export 1 million tonnes of bulk iron ore per year, building up to 3 million tonnes per year. The facilities would be used by Sherwin for up to 20 years.
The formal agreements will provide licences to allow Sherwin to access and use the land at East Arm Wharf to construct the necessary facilities and to stockpile materials.
The Heads of Agreement will terminate by mutual consent upon entering into the formal documents or 31 December 2013, whichever is earlier.