The project site, previously known as Sheep Hill, is on Lower Eyre Peninsula adjacent to Lipson Cove on the western shore of Spencer Gulf.

The associated mine development was a joint venture partnership between Centrex Metals and Wuhan Iron & Steel (Group) Co, a Chinese government steelmaking enterprise.

In September 2018, agribusiness Free Eyre expressed interest in revisiting and optimising previous plans for Port Spencer exclusively for the export of grain.

[4] The approval was met with some local opposition, who have argued that the project site is too close to the Lipson Island Conservation Park and that the business case for the port development doesn't look viable based on grain export alone.

[5] The interests of project proponents Free Eyre and Peninsula Ports are represented to the South Australian parliament by lobbying firm, Newgate Communications.

The prospect of funding such a project was challenged by Senator Rex Patrick, who believes that supporting the Cape Hardy port proposal less than ten kilometres to the north would be a better investment.

The original Port Spencer (Sheep Hill) proposal was dependent on the advancement of the Fusion Magnetite Project, which required its own environmental approvals at both State and Federal levels.