Flinders Power Partnership has agreed to sell CU-River Mining the former power station at Port Augusta, South Australia, with the iron ore focused company looking to turn the site into a bulk commodity, transhipment port facility.
The acquisition is expected to provide a substantial jobs boon for the Upper Spencer Gulf town, according to CU-River Mining.
Construction will start once feasibility and approvals are complete, the company said, with more than 150 people employed at peak and up to 100 permanent positions to be created once the facility is in operation.
It is expected the facility will have an initial capacity up to 15 Mt/y. However, future export potential via a multi-stage development approach, is in excess of 50 Mt/y.
It is proposed the A$250 million ($181 million) port facility will be capable of handling iron ore, grain and other commodities. Barges will be loaded at the port then sail into Spencer Gulf’s deeper water to unload onto larger, capesize vessels, which have a capacity of approximately 175,000 t.