ASX-listed Fenix Resources has signed a binding 30-year right-to-mine agreement (RTMA) with Sinosteel Midwest Corporation (SMC), a subsidiary of China Baowu Steel Group, giving Fenix exclusive rights to mine and export iron-ore from the Weld Range hematite iron-ore project in Western Australia’s Mid-West.

The Weld Range project, located about 500 km from Geraldton, contains a global mineral resource estimate of 290-million tonnes at an average grade of 56.8% iron. This includes the high-grade Beebyn-W11 deposit, which alone holds 20.5-million tonnes at 61.3% iron and is already subject to a separate ten-million-tonne right-to-mine agreement between Fenix and SMC.

Under the Weld Range RTMA, Fenix has committed to maintain production of at least 6-million tonnes a year, while targeting exports of 10-million tonnes a year in collaboration with Baowu.

The total consideration for the agreement comprises A$60-million in staged cash payments over 24 months – A$20-million upfront, followed by A$20-million on each of the first and second anniversaries of execution – alongside a production royalty ranging from A$4/t to A$5/t and a profit-share royalty of 10% to 15% of net profit after tax, depending on iron-ore prices. After payment of the consideration, Fenix will retain 100% of the earnings from ore sold under the Weld Range right to mine and export.

“Fenix has delivered on its strategy to unlock the value of the stranded iron-ore deposits of Western Australia’s Mid-West region. Securing 290-million tonnes of high-quality hematite direct shipping iron-ore immediately surrounding our existing operations in the Weld Range is a game changer for Fenix,” said executive chairperson John Welborn.

He added that the Weld Range project was “a perfect match for Fenix’s ambition and track record of achievement", and highlighted the company’s strengthened partnership with Baowu as a foundation for long-term growth.

Fenix has also started a feasibility study to integrate the Weld Range project with its existing operations, including the Iron Ridge and Beebyn-W11 mines, as well as its Mid-West transport, rail, and port infrastructure.

The Weld Range right to mine is seen by Fenix as a logical expansion of its Mid-West iron-ore operations, providing a long-term production platform and extending mine life, while creating opportunities for further regional collaboration, including the potential to increase production beyond the current contractual targets.

Fenix achieved its 2025 production target of four-million tonnes a year with the commissioning of its third iron-ore mine and now plans to leverage the Weld Range acquisition to materially expand output, improve operational efficiency, and enhance profitability.