PERTH (miningweekly.com) – Junior iron-ore miner Mount Gibson Iron is considering a logistics base to service the offshore oil and gas industry at its Koolan Island property.

The ASX-listed company reported on Tuesday that it had entered into an agreement with logistics provider Qube Holdings, providing a framework to progress the potential establishment of a logistical services base for the gas industry, in collaboration with the Dambimangari traditional owners.

The logistics base would include the staged development of a helicopter refuelling and maintenance facility, air search and rescue facilities, an all-weather runway suitable for large-scale passenger aircraft, a deep-water marine terminal and accommodation facilities.

Mount Gibson said that evaluation and design work already completed considered Koolan Island to be a highly favourable location for the establishment of the logistics base, given its close proximity to potential and proposed offshore oil and gas field developments in the Browse basin, as well as the presence of substantial existing infrastructure, and the ability to use areas of existing disturbance, thereby minimising potential environmental impacts.

Mount Gibson’s Koolan Island mine was placed on care and maintenance in December last year, while the company evaluated the project. Operations at the Main pit were initially suspended as a precautionary measure to allow the company to monitor and repair an area of instability in the upper part of the southern pit wall.

The miner said that the development of the logistics base would not restrict the potential repair of the Main pit seawall, or the resumption of iron-ore production at the Koolan Island mine, should a technically and economically robust solution be identified.

Furthermore, Mount Gibson pointed out that the development of the logistical base could provide operating cost benefits to future mining operations on the island.

Based on current time frames, customer needs and subject to positive feasibility work and the receipt of all necessary approvals, helicopter and aircraft services would likely be possible within 12 months of making a positive decision, Mount Gibson said.