Mallesons Stephen Jaques has advised Gindalbie Metals Ltd in the appointment of Verve Energy, Western Australia’s leading energy producer to underpin the electricity supply to the Karara iron ore project in Western Australia’s Mid West region.
Under the power purchase contract Verve will supply up to one million megawatt hours per year over a 15 year period at agreed prices. The power supply contract is a milestone for the Karara project and the Mid-West region. The contract, together with the proposed expansion and reinforcement of the northern part of the network will help the development of the mining industry and access to the significant iron ore resources in the Mid-West Region.
The Mallesons team included lead partner David Perks, senior associate Paul Lingard and lawyers Ben Bradstreet and Jessica Ham.
David Perks commented “This power supply agreement has significant long term benefits for Western Australian iron ore projects in the Mid-West. Mallesons is thrilled to have been able to advise Gindalbie and reach such a great outcome to underpin one of the largest single electricity loads in Western Australia”.
The project is due to commence production in early 2010.