Rinehart and Ellison join forces to create new iron ore export hub
Article by Josh Chiat courtesy of Stockhead.
Gina Rinehart’s Roy Hill and Hancock Prospecting will team up with Chris Ellison’s Mineral Resources (ASX:MIN) in a bid to open up a new iron ore export facility in Port Hedland.
MinRes has been waiting for approvals for the South West Creek berth, which would open up the development of its Marillana and Opthalmia iron ore deposits.
The proposed mines are joint ventures with Brockman Mining (ASX:BCK), which shot up 12.2% today on no news.
Hancock Prospecting outlined its plans for a number of new iron ore developments both at its own 1Bt-plus Mulga Downs deposit and through subsidiary Atlas Iron in its annual report on Friday, in which Rinehart’s company posted an eye-watering $7.3 billion profit for FY2021.
MinRes, Hancock and Roy Hill have entered an agreement to jointly investigate the development of a facility at the Stanley Point Berth 3, in which Roy Hill would develop and operate the project including a rail haulage and port services.
MinRes boss Chris Ellison said the deal will unlock stranded assets in the Pilbara as the company seeks to transition from higher cost production to low cost, long life assets.
“We are pleased to have entered into the Port and Rail Agreement with Hancock and Roy Hill,” he said.
“This partnership and infrastructure sharing is the first of its kind in the Australian resources industry and would enable significant value to be unlocked for MRL in a sustainable manner.
“Our long-stated strategy is to transition from short-life, high-cost mines to lower-cost, long-life operations underpinned by innovative infrastructure solutions. Developing our stranded assets will provide additional growth for MRL’s unique mining services build-own-operate model.
“We’re delighted to have reached this agreement which builds on our long and strong relationship we have with Hancock.
“We look forward to working with Hancock, Roy Hill, PPA and the State Government to progress this project which would help unlock stranded assets in the Pilbara and would create thousands of jobs for West Australians for years to come.”