MinRes sells stake in Onslow Iron haul road for A$1.3bn
ASX-listed Mineral Resources (MinRes) on Wednesday announced a binding agreement to sell a 49% interest in the Onslow Iron project’s dedicated haul road to Morgan Stanley Infrastructure Partners for A$1.3-billion.
The Onslow Haul road is a key component of the transportation infrastructure solution that MinRes developed to unlock stranded iron-ore deposits in the West Pilbara region of Western Australia.
The 150-km dual lane road, which links the Ken’s Bore mine site to the Port of Ashburton, will be fully sealed, fenced and equipped with fibre optic cabling to support the operation of MinRes’ autonomous road trains.
MinRes will retain majority ownership and exclusive rights to use, operate and maintain the Onslow Haul road.
“As the first transaction of its kind in the Australian iron-ore industry, it showcases the considerable value of MinRes’ portfolio of infrastructure assets and our ability to unlock significant capital.
“The transaction also establishes access to a new pool of capital to further accelerate our growth and continue to deliver returns for our shareholders," said MD Chris Ellison.
The transaction vehicle (road trust) will receive a life-of-mine inflation-adjusted tolling fee per tonne of iron-ore transported through the Onslow Haul road of A$8.041 (100% basis), capped at 40-million wet metric tonnes a year.
The tolling fee will be reset at a reduced rate after 30 years.
MinRes said it would own any tolling payments for volumes above 40-million tonnes a year.
Completion is expected in the second half of this calendar year, subject to finalisation of project conditions and Foreign Investment Review Board approval.
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