A big milestone has been reached for the 30 Mt/y Onslow Iron project, led by Mineral Resources (MinRes), with a positive final investment decision taken by all joint venture partners. The project is located 150 km east of Onslow in the West Pilbara region of Western Australia and is owned through the unincorporated Red Hill Iron Joint Venture (RHIOJV) which is 40% held by MinRes, who will manage the project, with the other partners being Baowu, AMCI and POSCO.
MinRes says Onslow Iron will be one of the largest iron ore projects undertaken in Western Australia, unlocking stranded deposits that would otherwise remain undeveloped. “It’s a flagship iron ore project for MinRes as we transition to low cost, long life operations with compelling project economics through commodity price cycles.” Stage 1 of the Onslow Iron Project will consist of the RHIOJV tenements which host Mineral Resources of 820 Mt and 537 Mt in Ore Reserves.
Managing Director, Chris Ellison, said he was delighted the project had achieved FID: “Achieving FID from all joint venture partners is a testimony to the Project’s credentials and demonstrates the high level of confidence all parties have in this project, which is set to redefine mining in Western Australia. Onslow Iron introduces a low-cost, long-life and low-risk operation to MinRes’ iron ore portfolio, along with the largest mining services contract in Australia. The successful delivery of the project is underpinned by MinRes’ mining services innovations, which make the project economics compelling through commodity price cycles and allow us to future proof the business against low iron ore prices.”
MinRes will deliver 100% of the mining services to the project under the largest mining services contract in Australia. “The contract will draw on our innovative and proprietary suite of mining services assets including our NextGen crushers, autonomous 320 t jumbo road trains, and 20,000 t transhippers, which are designed to process and move bulk commodities at a lower cost and with a reduced environmental footprint. The project will be dust free from pit-to-port.”
The RHIOJV will appoint wholly owned subsidiaries of MRL to engineer, procure, construct and commission all fixed plant, civil and earthworks and processing and non–processing infrastructure at the RHIOJV mine under a fixed price contract; build, own and operate a crushing plant at the RHIOJV mine under a life–of–mine crushing services agreement; and provide haulage, port and transhipping services to facilitate the export of RHIOJV product under a life–of–mine mine to ship services agreement. MinRes will sell 50% of its share of product to Baosteel with Baosteel having an option to take a further 25% under a life of mine offtake agreement.
It will build, own and operate all project infrastructure including a private, 150-km haul road, port infrastructure, transhipper wharfs and two Onslow Resorts which will accommodate the project’s workforce. “The Onslow Resort will set a new standard in accommodation for our fly-in, fly-out workforce. In an industry first, our resort-style accommodation will contribute to the physical and mental wellbeing of our people and will encourage more women, and couples, to live and work on site. Larger rooms, restaurant, cafe, tavern, commercial gym, Olympic sized swimming pool and a wellness centre, will help create a home-away-from-home experience for our people.”
MinRes adds that the project will provide long-term benefits to the local Traditional Owners, the Thalanyji people. “MinRes has agreed terms for a 30+ year lease of the Thalanyji freehold land that will host the Onslow Resort. It is set to be a unique model of cooperation that has never been seen before. We will continue to work with the Thalanyji people, the Robe River Kuruma people and other Traditional Owner groups to provide long-term economic and capacity-building opportunities.”
MinRes has additionally established the Ashburton Community Fund which is open to local organisations across the Shire of Ashburton. “We have already commenced supporting a number of community groups and FID now paves the way for us to progress discussions on further opportunities for the region. We also look forward to delivering an estimated 2,100 construction jobs and 6,300 indirect jobs during the construction phase, and 1,200 permanent jobs and 3,600 indirect jobs during operations. Onslow Iron will also deliver an estimated A$190 million in corporate taxes and A$150 million in royalties every year.”
With FID now confirmed, the project is on track to meet key milestones. Early works are underway as part of the development phase, with all equipment expected on site by June 2023 and first ore on ship targeted as early as December 2023.
