News

THE Western Australian government has endorsed a revised plan from the Pilbara Ports Authority for Port Hedland to lift iron ore export capacity to as much as 660 million tonnes per annum.

Port Hedland’s throughput was 546Mt last year, of which 523Mt was iron ore.

The amended port development plan facilitates the development of an additional iron ore export berth, Stanley Point Berth 3, which, subject to approvals, would be allocated to the new joint venture between Mineral Resources and Hancock Prospecting.

Under the plan, BHP, Fortescue Metals Group and Roy Hill would receive increased capacity allocations of about 25% and FMG would be granted approval to build a new shiploader at Anderson Point Berth 5 to support exports from the Iron Bridge project.

The plan also allows for a future bulk liquids berth in South West Creek and the development of a second general cargo berth at Lumsden Point.

In late November, MinRes and Hancock announced a joint venture to investigate the development of a new iron ore export facility at SP3, in the South West Creek, where Hancock subsidiary Roy Hill would provide rail and port services to both companies.

The project remains subject to approvals and a final investment decision.

MinRes has long coveted the port space, which is critical to its plans to increase iron ore exports to as much as 90Mtpa.

If SP3 is developed, MinRes is aiming to ship at least 20Mtpa of iron ore.

MinRes managing director Chris Ellison described the announcement as a key milestone in its strategy to unlock stranded deposits.

“We look forward to working with the state government, the Pilbara Ports Authority, our valued partner Hancock and Roy Hill to progress this project,” he said.

Hancock chair Gina Rinehart described the news as “very exciting”.

“We are uniquely placed to fast track the delivery of critical port infrastructure by leveraging off and integrating with existing facilities and tenure,” she said.

“This will unlock a suite of growth assets, some of which would have otherwise remained stranded assets, to bring jobs, revenue and opportunities for West Australians.”

MinRes also has a JV with Brockman Mining, under which it is to provide a logistics solution for Brockman’s Marillana and Ophthalmia deposits.

Brockman said it was “delighted” with the progress.

Approvals for the port project are expected by mid-year.

Brockman was the biggest mover on the ASX this morning, jumping 41% to A6.5c.

Shares in MinRes were up 2.4% to $58.80.

Macquarie described the announcement as an important de-risking step for MinRes to develop Marillana.

“Buoyant iron ore and lithium prices underpin positive upgrade momentum for MIN with a spot price scenario generating 27% and 100% higher earnings than our base case for FY22 and FY23, respectively,” the bank said.

Macquarie maintained and outperform rating and 12-month price target of $75.