Ann: 2022 Financial Year - Results Release Presentation, page-2

https://thewest.com.au/business/min...-iron-ore-project-as-profit-tumbles-c-8038969

Mineral Resources gives nod to $3b Onslow iron ore project as profit tumbles

Stuart McKinnonThe West Australian
Mon, 29 August 2022 7:06AM



Mineral Resources managing director Chris Ellison. Credit: Daniel Wilkins/The West Australian


Mineral Resources has struck a deal with its Red Hill Iron joint venture partners to develop the first stage of its $3 billion Onslow iron ore project.

Under the terms of the deal, which includes MinRes granting its partners a $1.3b loan to help fund construction of the project, the Chris Ellison-led company will lift its stake in the Red Hill joint venture from 40 per cent to 60.3 per cent.

MinRes announced the news on Monday as it reported a 72 per cent drop in annual profit to $351 million on tumbling iron ore prices and declared a final fully franked dividend of $1 a share.

Stage one of Ashburton will target 35 million tonnes a year with first ore on ship targeted for as soon as December next year.

MinRes will provide life-of-mine services to the project, mining and crushing its ore, transporting it using autonomous road trains along a 150km long private road west to a proposed transhipping port at Onslow for export.

The company estimates operating costs of $32.23/t excluding royalties, with MinRes charging its partners a $7.74/t infrastructure capital charge.

Mr Ellison said the Ashburton project was set to “redefine” mining in WA.
“Onslow Iron introduces a low-cost, long-life, low-risk operation to the MinRes iron ore portfolio, along with the largest mining services contract in Australia,” he said.
“The successful delivery of the project is underpinned by MinRes mining services innovations, which make the project economics compelling through commodity price cycles and allow us to future proof the business against low iron ore prices.”

The Red Hill tenements host 820Mt of resource and 537Mt in reserve.
The Red Hill partners include China’s Baosteel, which will take 50 per cent of Onslow’s ore with an option to take a further 25 per cent, US-based AMCI and South Korea’s POSCO.

Stage two of Onslow involves the Bungaroo South and Kumina iron ore tenements.