Tellus and Qube Bulk Form Project Alliance

Key points:

• Tellus and Qube Bulk (“Qube”) form a strategic national alliance covering Tellus’ bulk mineral logistics requirements
• Qube joins Tellus’ Chandler project consortium in the Northern Territory
• Qube joins Tellus’ Sandy Ridge project consortium in Western Australia
• Qube’s first task is to provide expert opinion during the feasibility studies on:
  • mine to vessel logistics for salt and kaolin bulk export; and
  • collation, warehousing and delivery of equipment, supplies and materials
• Subject to the projects proceeding to the build and operation phase, Qube will manage the development of relevant enabling logistics infrastructure.

Tellus Holdings Ltd (Tellus) is pleased to announce Board approval for the Sandy Ridge bulk kaolin sample processing pilot program following early success in the company’s capital raising efforts.

This follows the successful completion of laboratory scale processing which confirmed the Sandy Ridge kaolin, which is a valuable industrial mineral, is well suited for high value ceramic, paint, glass fibre and polymer industry grade products.

Tellus has a significant materials handling and logistics life of project requirements for both the Chandler project in the Northern Territory and the Sandy Ridge project in Western Australia.

These projects will see millions of tons of salt and kaolin packaged and transported from mine to port to vessel, for export mainly to Asia.

Qube will also assist in the collation, warehousing and delivery of equipment, supplies and storage materials. Signing agreement Media Release

Tellus and Qube will have the opportunity for periodic review and assessment of the arrangements. It is envisioned that Qube will be an active partner during the construction phase, taking a lead role in delivering all enabling logistical infrastructure for the projects and then assuming operational control to provide a turnkey logistics solution for the bulk commodities for both projects. Qube will also take on lead role for delivering operational consumables, although where possible the parties will find opportunities for local businesses.

“This formalises an established working relationship with Qube as our preferred partner on the Chandler project and extends this excellent relationship to our exciting new Sandy Ridge project,” commented Tellus’ Managing Director Duncan van der Merwe. “We are very pleased to partner with Australia’s leading bulk logistics team and look forward to the smooth delivery of the logistics,” he said.

Qube has the industry leading “mine to vessel’ solutions for commodity export producers. In addition it will provide and/or manage various infrastructure components for the projects such as haulage roads, loading facilities, warehousing, rolling stock, vehicles and equipment. By partnering with Qube, Tellus has an expert team managing in-country logistics, leaving management to focus on the core business.

Qube is Australia’s largest integrated provider of import and export logistics services with national operations that provide a broad range of services. The Ports & Bulk division has diversified operations from Port Hedland in the west, where Qube stockpile and load iron ore for export markets, through to Port Kembla in the east where Qube handle motor vehicles, heavy machinery and project cargoes. The Logistics division has strategically located facilities in all capital city ports and provides road and rail container transport, customs and quarantine services, container parks, intermodal terminals, warehousing and international freight forwarding.

Tellus Holdings Ltd (“Tellus”) is an Australian exploration company in mine evaluation stage with an attractive portfolio of rock salt and kaolin deposits. Tellus’ flagship projects are a proposed underground rock salt mine in the Northern Territory and a proposed kaolin mine in Western Australia. Tellus is the parent of a group of companies that plans to be involved in mine building, processing and the sale of industrial and edible salts, associated salt minerals and kaolin. Proposed complementary businesses include the safe storage in voids created by mining as is done in countries like the UK, EU, USA and Canada.

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