Legend International Holdings, Inc (Legend) (OTCBB:LGDI) is pleased to announce that it signed today a Memorandum of Understanding with P&O Trans Australia for haulage and handling services associated with Legend’s Georgina Basin Phosphate project.
This MOU will guide contract negotiations worth approximately $40 million during the first year of operations and up to $3bn over the life of a twenty year agreement.
Managing Director of P&O Trans Australia, Mr. Paul Digney said of the tender process that POTA was determined from the outset to offer Legend a fully integrated package that demonstrated the core competencies of creativity and innovation in the delivery of supply chain management solutions.
“We are fortunate to have developed a solid team with both youth and experience combined. Our people went to great lengths, including international travel to source suitable locomotives and rolling stock to service this new and important project for Queensland.” said Mr Digney.
Speaking on behalf of Legend, President and CEO Mr. Joseph Gutnick cited POTA’s commitment to flexibility as a key factor in the appointment. Mr Gutnick said: “This is a staged project, commencing late 2009/early 2010 with an annual volume of between 0.5 and 1 million tonnes per annum which, with the construction of several key components of infrastructure will rapidly increase to up to 5 million tonnes per annum.”
POTA was the only bidder to offer a packaged suite of services, designed to flow seamlessly between Stage 1 packaged material and the shift to bulk haulage during Stage 2.
Legend’s tender process was to identify suitable operators with the ability to carry out significant bulk operations in remote areas. POTA’s bid included:-
- Road cartage from D-Tree and Paradise North tenements, both located approximately 160 kilometres from the deposit to the rail head in Mount Isa;
- Rail haulage from Mount Isa to Port of Townsville, approximately 1,000 kilometres; and,
- Various storage and material handling tasks.
Mr Gutnick said that Legend has been in extensive negotiations with QR Network, the below rail manager on the Mount Isa to Townsville network and he was confident that capacity would be made available. “We have been assured that there is in excess of one million tonnes per annum capacity available right now on the line and also that QR welcomes the introduction of a second above rail operator.” said Mr Gutnick.
“Legend will continue to work closely with State and Federal agencies to ensure that enabling infrastructure such as the Eastern Access Corridor Railway in Townsville is delivered and that the 1,300 jobs associated with Stage 2 of the project are forthcoming”
In response, Mr Digney said that for the initial contract components, approximately 50 new jobs would be created in POTA, split between Mount Isa and Townsville.
About Legend
Legend is led by Joseph Gutnick, a prominent Australian mining industry entrepreneur, who has overseen some of Australia's largest and most prestigious resource discoveries.
Legend's primary focus is the development of its phosphate interests in the Georgina Basin, Queensland, Australia including Paradise (formerly Lady Annie and Lady Jane), D-Tree, Thorntonia, Lily Creek, Quita Creek, Sherrin Creek and Highland Plains.
Legend plans to produce an average of 5 million tonnes per year of phosphate rock concentrate of 30%+ P2O5 by 2012, thus becoming one of the world's leading producers of phosphate rock. More information on Legend is available at http://www.lgdi.net/.
About P&O Trans Australia
P&O Trans Australia the business of POTA Holdings Pty Ltd is the joint venture company of Kaplan (KIL: Kaplan Infrastructure & Logistics Fund & KEL: Kaplan Equity Limited) and DP World (Government Owned Corporation in Dubai).
POTA operates under the Chairmanship of former Patrick CEO Chris Corrigan and his long established senior management team of container transport and rail logistics specialists. P&O operates a Port precinct based Full and Empty container logistics business working from a total of 16 sites located in the State capital Cities of mainland Australia, a Multi-User Intermodal Terminals business with 6 sites in capital city locations along the Eastern Seaboard of Australia, a Rail Freight business operating Shipping Services between regional, metropolitan and interstate origins and the Ports of Sydney and Melbourne and a Global Freight Forwarding company with a network of offices in Australia and around the World.
Forward-Looking Statements
Forward-looking statements in this press release are made pursuant to the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, the risks of exploration and development stage projects, risks associated with environmental and other regulatory matters, mining risks and competition and the volatility of mineral prices. Actual results and timetables could vary significantly. Additional information about these and other factors that could affect the Company’s business is set forth in the Company’s fiscal 2008 Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
Legend International Holdings Inc
Mr. Joseph Gutnick, +61 3 8532 2866
President & Chief Executive Officer
Fax: +61 3 8532 2805
josephg@axisc.com.au
or
Legend International Holdings Inc
General Manager Business
New York Office
(212) 223 0018
Fax: (212) 223 1169
legendinfo@axisc.com.au
