Perth-based mining services provider Mineral Resources Limited has reached an agreement with Red Hill Iron Limited (RHI) to acquire the company’s 40% participating interest in the Red Hill Iron Ore Joint Venture (RHIOJV) in the West Pilbara region of Western Australia.
Mineral Resources Managing Director Chris Ellison said the proposed transaction aligned with the company’s strategy to expand its resource inventory around the Ashburton Hub to underpin a long-term, sustainable iron ore export business.
“The transaction is in line with our strategy to build own and operate infrastructure assets to unlock stranded iron ore deposits in the Pilbara and build a long-life, sustainable iron ore business exporting out of Onslow,” Mr Ellison said.
“The RHIOJV holds a sizeable iron ore Mineral Resource in a strategically significant location in the West Pilbara. MRL’s proposed acquisition of RHI’s participating interest in the RHIOJV will enhance the Company’s iron ore footprint in the West Pilbara as we progress our Ashburton Hub development.
“We look forward to joining the RHIOJV and working constructively with the other partners to deliver value for all stakeholders.”
Established in in 2005, the RHIOJV contains a Mineral Resource of 820Mt grading 56.44% iron. The project’s remaining 60% interest is owned by the Australian Premium Iron Joint Venture (APIJV), which is held 50-50 by Aquila Steel and AMCI.
The deal, valued at $400 million in cash plus a royalty of 0.75% on all iron ore that is extracted and sold from the RHIOJV tenements, is expected to complete ‘around early September 2021’.
