[Ferro-Alloys.com] Japanese trading house Mitsui will not extend the option to provide $60mn in funding for the 10mn t/yr Hawson iron ore project operated by Australian iron ore explorer Carpentaria Resources given instability in the boardroom at Carpentaria, but remains supportive of the Hawson project that is near Broken Hill in New South Wales.

The decision by Mitsui halts a two-year association with the Hawson project since August 2018 when it agreed to an option for an offtake of 2mn t/yr of high-grade iron ore from Hawson over 20 years in return for a $60mn contribution to the debt funding package for construction of the project.

"Whilst Mitsui intends to re-open negotiations with Carpentaria once stability is restored to the board, in the meantime it has chosen not to extend the bankable feasibility study (BFS) funding deed past 31 December 2020," Carpentaria said.

Mitsui had planned to discuss and negotiate the terms of extending the BFS funding deed beyond 31 December 2020 prior to its expiry on that date, Carpentaria said. But the recent instability in the Carpentaria board has led Mistui to conclude that the current circumstances are not appropriate for the conduct of such negotiations, it said.

Carpentaria shareholders are to meet on 30 December to vote on counter proposals that involve either removing the firm's chairman Peter Graham or one of the firm's directors Paul Cholakos.

The Hawson project was awarded a major project status in April 2018 by the federal government. Carpentaria said in 2017 that it expects that its Hawson iron ore project could yield 330mn t of 69.7pc Fe iron ore concentrate.

Source: Argusmetal

Jan. 15, 2020 Beijing China