Strike Resources (ASX: SRK) has passed a major milestone in the development of its Paulsens East iron ore project in Western Australia’s Pilbara region, announcing the Traditional Owners have approved a Native Title Mining Agreement and State Deed.
The agreement and deed were approved by the Puutu Kunti Kurrama and Pinikura People (PKKP) at a meeting last Friday. These ticks of approval were essential for the company to obtain its mining licence.
In today’s announcement, Strike said the State Deed will now be lodged with the WA Department of Mines, Industry Regulation and Safety and the mining lease is expected to be granted “imminently”.
The company will then submit its formal mining proposal to the department for the issue of a mining permit for mine development and operations. The department has an internal target of processing mining proposals within 30 business days.
Strike managing director William Johnson thanks the PKKP and its representatives for their “continued support”.
“The execution of the Native Title Agreement and State Deed is a key milestone in the development of the project and allows Strike to continue to fast track development of the project to take maximum advantage of current high iron ore prices,” he said.
Native Title terms
According to the company, the Native Title Agreement provides an agreed framework for Strike to undertake its mining activities at Paulsens East in a way that minimises impacts on Aboriginal cultural heritage.
The deal also includes a package of financial and business development related benefits for the PKKP including an annual payment based on iron ore sales, an annual training and development allowance and contracting opportunities for PKKP members.
Paulsens East iron ore project
Strike’s 100% owned Paulsens East project in WA’s Pilbara comprises a 3km long outcropping ridge of high-grade direct shipping ore (DSO).
The company is advancing a feasibility study on the project targeting production of 1.5 million tonnes per annum of lump and fine DSO for an initial mine life of four years. Production is anticipated to start next year.