Mineral Resources (ASX:MIN) has delivered the first shipment of iron ore from its Onslow Iron Project in Western Australia to the world’s largest steelmaker, China Baowu Steel Group.
Delivered ahead of schedule, two Mineral Resources’ transhippers are now loading 113,000 wet metric tonnes of iron ore aboard a bulk carrier anchored 40km off the Port of Ashburton.
Mineral Resources, which has a market capitalisation of $15.57 billion, designed, built, and manages the fully integrated mine-to-ship mining and transport infrastructure, which unlocks stranded iron ore deposits in the West Pilbara region that would otherwise remain undeveloped.
The project will ramp up to a nameplate capacity of 35 million tonnes per year by June 2025. The remaining infrastructure work is expected to be completed in the second half of this year.
Managing Director Chris Ellison says the company has unlocked a new iron ore region for Australia, while Onslow is a “game-changer” for the company as it transitions to low-cost, long-life operations.
“This project was stranded for more than a decade. In 2021, MinRes breathed new life into it and in less than three years we have planned, designed, and have now delivered first ore on ship ahead of time and on budget,” he says.
Mineral Resources expects up to 1,600 operational roles to be established at the peak of the ramp up at Onslow.
Further, the company will be providing life-of-mining services under crushing and mine-to-ship agreements. The contracts draw on the company’s suite of mining services and infrastructure assets.
Mineral Resources owns and operates the crushing plant at the mine and all project infrastructure beyond the mine, including a 150km haul road, autonomous road trains, port infrastructure, transhipper wharf, transhippers and an accommodation resort in Onslow.
The company has progressed a partner to own a 49% interest in the haul road and is on track to be signed in the second half of this year.
The Onslow Project is one of the largest iron ore projects currently under development in Australia. The project lies in the West Pilbara region and is aimed to unlock billions of tonnes or stranded iron ore deposits.
Write to Aaliyah Rogan at Mining.com.au
Images: Mineral Resources
