The Red Hill Iron Ore Joint Venture (RHIOJV) parties have made an unconditional Final Investment Decision (FID) to develop the RHIOJV iron ore assets as part of Mineral Resources’ Ashburton Hub Development. A Binding Project Development Term Sheet has also been executed.
Mineral Resouces currently owned 40 per cent of the RHIOJV, while API Management Pty Ltd (APIM), on behalf of the parties to the Australia Premium Iron Joint Venture, Aquila Steel Pty Ltd, and AMCI Pty Ltd owned 60 per cent of the RHIOJV.
According to Mineral Resources, Onslow Iron Project will be one of Western Australia’s largest iron ore developments.
“I’m delighted that our flagship Onslow Iron Project has reached this significant milestone. Achieving FID from all joining venture partners is a testimony to the Project’s credentials and demonstrates the high level of confidence all parties have in this project, which is set to redefine mining in Western Australia,” Mineral Resources Managing Director Chris Ellison said.
The Binding Development Term Sheet includes terms such as Mineral Resources continuing to act as manager of the RHIOJV.
Mineral Resources will also fund RHIOJV capital expenditure of $1.3 billion through a carried expenditure loan until commercial production. In exchange, the company will earn an additional 17 per cent participating interest in the RHIOJV.
Additionally, the company will fund, build, own, and operate all infrastructure outside the mind, including private haul road and port infrastructure at the Port of Ashburton.
“Onslow Iron introduced a low-cost, long-life, and low-risk operations to MineRes’ iron ore portfolio, along with the largest mining services contract in Australia. The successful delivery of the project is underpinned by Mineral Resources’ 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,” Ellison said.
According to Ellison, Mineral Resources look forward to delivering solid returns for its joint venture partners and shareholders, creating thousands of jobs, injecting billions of dollars into the economy, and working with Traditional Owners, pastoralists, and the wider community.
Early works have commenced as part of the development phase, with all equipment expected on site by June 2023 and the first ore on ship targeted as early as December 2023.
