Mineral Resources (ASX:MIN) enters agreement with Hancock and Roy Hill
Article by Lisa Simcock courtesy of The Market Herald.
Mineral Resources (MIN) has entered into a rail and port agreement with Hancock Prospecting and Roy Hill.
The agreement will see Mineral Resources and Hancock jointly investigate the development of a new iron ore export facility at the port of Port Hedland’s Stanley Point Berth 3 in South West Creek.
Roy Hill, meanwhile, will provide services to both Mineral Resources and Hancock for the development and operation of the project, including rail haulage and port services.
Under the agreement, Mineral Resources and Hancock will form a joint venture to obtain necessary approvals and agreements to develop and operate the iron ore export facility at Stanley Point.
If developed, the project will provide Mineral Resources with a port and rail haulage solution to deliver ore mined from its deposits to Port Hedland.
The project aligns with the company’s strategy to unlock deposits in the Pilbara by developing pit-to-port solutions.
Development of the project is subject to a grant from the Pilbara Ports Authority and a positive final investment decision.
“We are pleased to have entered into the Port and Rail Agreement with Hancock and Roy Hill. This partnership and infrastructure sharing is the first of its kind in the Australian resources industry and would enable significant value to be unlocked for MIN in a sustainable manner,” Managing Director Chris Ellison said.
“Our long-stated strategy is to transition from short-life, high-cost mines to lower-cost, longlife operations underpinned by innovative infrastructure solutions. Developing our stranded assets will provide additional growth for MIN’s unique mining services build-own-operate model.”