Thee JWD deposit has a resource of 10.7 million tonnes and is 51 per cent owned by Fe.

In response to Fe receiving works approval in March from the Department of Water and Environmental Regulation (DWER), both companies have agreed to additional terms on the existing mining rights agreement.

The renegotiation has extended the timeframe for Fe to extract the first 300,000 tonnes of ore from October 2021 to January 2022.

To compensate for the extension, Fe has agreed to pay a further $125,000 cash and increase royalties to GWR by $1 per tonne while iron ore is priced above $US145 ($187) per tonne.

Additionally, GWR can option to buy 50,000 tonnes of iron ore fines from the mine gate at an estimated cost plus $10 per tonne, and Fe has guaranteed its subsidiary’s royalty and payment obligations.

GWR chairman Gary Lyons said the company was grateful for Fe’s cooperation in reworking the agreement.

“The JWD deposit is a high-quality deposit, and we are very pleased to see an experienced FEL team advance operation with early works activities ramping up, earthworks underway and mobilisation of the remaining Big Yellow mining fleet planned to occur this weekend,” Lyons said.

“We feel the renegotiated terms are a positive step for GWR shareholders and will facilitate the expediting of mining operations at JWD.”

Mining contractor Big Yellow was provided a letter of intent by Fe in mid-March and has begun aiding in the early works required at JWD, the scope of which should total around $250,000.