The agreement entitles Flinders Power access to Felix coal tenements in the basin for up to six years.
Flinders Power Partnership owns and operates a 730-megawatt coal fired power station at Port Augusta, supplied by the company’s Leigh Creek mine.
Under the agreement an annual fee will be paid to Felix for administration costs. At any time during the six year term Flinders may withdraw from the arrangement or purchase the tenements. There is also provision for royalty payments to Felix based on future production.
“Phillipson Basin Coal is a valuable energy resource for South Australia and highly ranked as a replacement for the Leigh Creek coal mine when it reaches the end of its natural life,” said Felix managing director Jon Parker.
