A big milestone has been reached for our transformational Onslow Iron project, with a positive final investment decision taken by all joint venture partners.
The project is located 150 kilometres east of Onslow in the West Pilbara region of Western Australia and is owned through an unincorporated joint venture between MinRes, who will manage the project, Baowu, AMCI and POSCO.
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.
Our 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 per cent 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 tonne jumbo road trains, and 20,000 tonne 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.
We will also build, own and operate all project infrastructure including a private, 150-kilometre haul road, port infrastructure, transhipper wharfs and two Onslow Resorts which will accommodate the project’s workforce.
A NEW FIFO STANDARD
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.
SUPPORTING TRADITIONAL OWNERS
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.
BENEFITS TO THE COMMUNITY
MinRes has 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 2100 construction jobs and 6300 indirect jobs during the construction phase, and 1200 permanent jobs and 3600 indirect jobs during operations. Onslow Iron will also deliver an estimated $190 million in corporate taxes and $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.