Fenix has secured exclusive rights to mine iron ore from the Weld Range project in Western Australia in agreement with the world’s largest steel producer, China Baowu Steel Group Corporation Limited (Baowu).
Weld Range contains a series of hematite direct shipping ore deposits which will adjoin Fenix’s existing Iron Ridge ore mine and includes the Beebyn-W11 mine, which is already under Fenix control.
Fenix executive chairman John Welborn described the 30-year agreement, signed with Baowu subsidiary Sinosteel, as a “game-changer” for the company, serving as a logical expansion of Fenix’s footprint in the Weld Range, located 500km by road from Geraldton in Western Australia.
The Weld Range project is said to contain an estimated 290 million tonnes (Mt) of iron ore at a grade of 56.8 per cent, and includes the high-grade Beebyn-W11 deposit with a mineral resource estimate (MRE) of 20.5Mt at a grade of 61.3 per cent.
“Development of the Weld Range project has long promised to be a significant value creator for Western Australia,” Welborn said. “This major mining and logistics project is a perfect match for Fenix’s ambition and track record of achievement.
“Sinosteel are a foundation partner in our growth as an emerging iron ore producer. We are delighted this successful partnership has now expanded to include Baowu Group, the world’s largest steelmaker.”
A feasibility study for the Weld Range project is underway with Fenix committed to maintaining its production rate of 6Mtpa. The company plans to work with Baowu to extend this to 10Mtpa.
Fenix will pay a total of $60 million to Sinosteel.
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Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
