The Queensland government has shown its commitment to opening up the North West Minerals Province in the state, with $500 million worth of measures aimed at developing the region.
In recently-announced spends, the government reaffirmed its $380 million development of the Mount Isa line, which takes resources from the province to the port at Townsville.
It’s also working to reduce access charges to the line, providing Queensland Rail $20 million each year for four years to do just that.
The government is also tipping in $30 million for the construction of a new terminal at the Port of Townsville, with the port contributing the remaining $18 million.
The raft of spending in the region is great news for miners both established and emerging, such as Centrex Metals (ASX:CXM).
In a statement to the market today, it said that rail access charges were the “single largest operating cost for the Ardmore Phosphate Rock Project”.
“The company congratulates the Queensland government on identifying and moving forward with initiatives that will assist new developments in the north-west minerals province, where Ardmore is located,” Centrex CEO Simon Slesarewich said.
“We look forward to assisting the government with the implementation of the rail subsidy, which is likely to have a material impact on Ardmore’s single largest operational cost — rail and port.”
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About Centrex Metals
Centrex Metals (ASX:CXM) is an ASX-listed minerals developer, with a primary focus on the Ardmore phosphate project in north-west Queensland.
Ardmore is one of the few remaining undeveloped high-grade phosphate rock deposits in the world. Centrex is developing a phosphate rock export operation. The deposit lies on an existing Mining Lease
The deposit is shallow and can be cheaply mined via open-cut strip mining without the need for blasting. Once the already high-grade ore is crushed to meet export sizing specifications, removal of fine grained mainly clay material produces a premium grade concentrate product.
Centrex has completed the Definitive Feasibility Study for the project, as well as the fabrication of start-up plant with commissioning due mid-2019.
This content is produced by Star Investing in commercial partnership with Centrex Metals. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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