Tag Archives: Rob Brierley

Fenix in it for the long haul at Iron Ridge

Fenix Resources says it has executed a contract for the road transport component of its Iron Ridge project, in Western Australia, with Fenix Newhaul Pty Ltd.

Fenix Newhaul, formerly Premium Minehaul Pty Ltd, is the incorporated joint venture company established to implement the strategic alliance between Fenix and Craig Mitchell, the founder and former owner of Mitchell Corp, a major supplier of transport and logistics services to the Western Australian mining industry, as announced in May 2019.

Fenix Newhaul is 50% owned by Fenix and 50% owned by Newhaul Pty Ltd (formerly Minehaul Pty Ltd), an entity controlled by Craig Mitchell.

Fenix Newhaul has already ordered prime movers and trailers for the project and secured funding for this specialist equipment through an equipment manufacturer, Fenix said. Fenix Newhaul also has funding for start-up costs and equipment deposits through shareholder loan facilities totalling up to A$3.9 million ($2.8 million).

The contract is valued at around A$360 million for the estimated six-year life-of-mine, based on a terminal gate diesel price ex-Geraldton of around A$1.34/litre (current diesel price is around A$1.05/litre). It is due to commence in December 2020, in line with the current project development timeline.

Fenix Managing Director, Rob Brierley, said: “Road transport was quickly identified as the largest cost component for the commercialisation of Iron Ridge. We took an innovative approach to optimise this aspect and we strongly believe that the joint venture concept with Craig Mitchell has been the right way to go. Fenix Newhaul plan to commence operations with a mix of sub-contract and owned fleet and they are actively recruiting for personnel, with most of their employees to be Geraldton-based.”

The terms of the contract are in line with the company’s feasibility study, announced on November 4, 2019, which outlined that circa-8 Mt of high-grade hematite, grading some 64% Fe, will be extracted over a 6.5-year life of mine.

Last week, Fenix awarded the drill & blast, mining, and crushing & screening contract for Iron Ridge to MACA Ltd.

MACA to get mining Fenix Resources’ Iron Ridge project

Fenix Resources has awarded the drill & blast, mining, and crushing & screening contract for its Iron Ridge project, in Western Australia, to MACA Ltd.

MACA is a reputable contractor with a strong track record of operational experience in the mining sector and has been involved in the Australia iron ore industry having carried out long-term works for Atlas Iron Ltd and Crossland Resources, Fenix said.

Early stage works commenced last month through local contractors, with MACA currently mobilising heavy earthmoving equipment to site.

Open-pit mining and crushing and screening operations are due to commence in the current quarter.

MACA said the contract is expected to generate around A$185 million ($131 million) in revenue for it over the 75-month term.

Fenix Managing Director, Rob Brierley, said: “We having been interacting with MACA on all aspects associated with the Iron Ridge project for well over a year now, and we are pleased that this relationship will continue as we transition to production in the near-term.

“MACA has vast experience in all aspects of iron ore mining operations and has essentially offered Fenix a one-stop shop for all our service requirements leading up to the transport of the ore from site to the port of Geraldton.”

The terms of the contract are in line with the company’s feasibility study, announced on November 4, 2019, which outlined that circa-8 million tonnes of high-grade hematite grading some 64% Fe will be extracted over a 6.5 year life of mine.

This same study assumed a single open-pit operation using conventional excavator‐truck mining fleet, adopting 10 m benches and mining these benches in three flitches. Ore and waste would be hauled to the run of mine pad and waste dump, respectively, by a fleet of 100 t haul trucks, while drill and blast will be conducted using a top hammer drill rig and ANFO or heavy ANFO explosives.