Mineral Resources (MinRes) is set to sell a 49 per cent stake of the Onslow Iron project’s dedicated haul road in Western Australia to Morgan Stanley Infrastructure Partners.
Onslow Iron product is set to be transported by autonomous road trains fitted with autonomous haulage solutions technology developed by Hexagon.
The autonomous road trains will carry Onslow Iron product along a 150km dedicated fenced and sealed haulage road, which will be the shortest pit to port distance in the Australian mining industry.
The Onslow haul road links the Ken’s Bore mine site to the Port of Ashburton, where Onslow Iron product will be shipped via an initial fleet of five fully enclosed transhippers being loaded onto capesize vessels anchored 40km off the port.
Under the new agreement worth around $1.3 billion, MinRes will retain majority ownership and exclusive rights to use, operate and maintain the Onslow haul road. Any tolling payments for iron ore volumes above 40 million tonnes per annum will also be fully owned by MinRes.
“I am proud of the strategic relationships we have formed with global industry leaders and pleased to welcome Morgan Stanley Infrastructure Partners as a partner in the Onslow haul road,” MinRes managing director Chris Ellison said.
“This transaction is a strong endorsement of Onslow Iron’s world-class credentials, after the project last month delivered first ore on ship ahead of schedule.”
MinRes said the transaction values the Onslow haul road at $2.7 billion.
“As the first transaction of its kind in the Australian iron ore industry, it showcases the considerable value of MinRes’ portfolio of infrastructure assets and our ability to unlock significant capital,” Ellison said. “The transaction also establishes access to a new pool of capital to further accelerate our growth and continue to deliver returns for our shareholders.”
The Onslow haul road is expected to be completed by the second half of 2024.
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