MSIP, a private infrastructure investment platform within Morgan Stanley Investment Management, paid Mineral Resources upfront cash consideration of AU$1.1 billion on Tuesday (September 24).
While that payment marked the completion of the transaction, MSIP is required to issue an additional AU$200 million in cash if the haul road achieves a run rate of 35 million tonnes per year for any quarter before June 30, 2026.
“I’m pleased to officially welcome MSIP as a partner in the Onslow Iron project,” said Chris Ellison, managing director of Mineral Resources. “This partnership is yet another strong endorsement of Onslow Iron’s world-class credentials and showcases MinRes’ ability to unlock significant capital from our portfolio of assets.”
Mineral Resources will have majority ownership and exclusive rights to use, operate and maintain the haul road under the partnership. It will also have majority exposure to stable earnings from the haul road over Onslow Iron’s life.
“We are proud to be the co-steward of the Onslow Iron Haul Road, a critical transportation infrastructure asset in the West Pilbara,” Tim Cooper, managing director of MSIP, said in Wednesday’s (September 25) release. “We value MinRes’ exceptional operatorship and are excited to explore further opportunities to deepen our partnership.”
Regarded as one of the largest iron ore projects under development and Australia’s first dust-free project, Onslow Iron is set to unlock billions of tonnes of stranded deposits in the West Pilbara region. It delivered its first ore on ship last May.
The 150 kilometre haul road is a key component of the asset’s pit-to-port infrastructure, which is designed to see products transported by autonomous road trains via a link from the Ken’s Bore mine site to the Port of Ashburton.
The road remains scheduled for completion in October. Once finished, it will allow fully enclosed transhippers to transport ore to Capesize vessels anchored 40 kilometres off the coast.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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