Mineral Resources and its joint venture partners have agreed to go ahead with a $3 billion iron ore development described as one of the largest ever undertaken in Western Australia.
Work on Onslow Iron Project 150km east of Onslow in the West Pilbara region is targeted for June, with first ore shipments expected on ship as soon as December 2023.
Mineral Resources will manage all operations and build a 150km private haul road to the Port of Ashburton, where ore will be transported via the company's fleet of autonomous 320-tonne "road trains", massive trucks bigger than semi-trailers.
Phase one of the Onslow project is targeting an annual capacity of 35 million tonnes per annum and is estimated to produce at a cost of $US32.23 a tonne, excluding royalties. Iron ore is currently selling at $US108 a tonne.
Mineral Resources managing director Chris Ellison said the project was set to "redefine mining in Western Australia".
"We look forward to delivering solid returns for our joint venture partners and shareholders, creating thousands of jobs, injecting billions of dollars in the economy and working with the Traditional Owners, the Thalanyji people and the Robe River Kurama people, pastoralists and the wider community, to provide them with long-term benefits and economic opportunities," Mr Ellison said.
The other parties in the Red Hill Iron joint venture are state-owned Chinese steelmaker Baowu, South Korean steelmaker Posco, and US-based resource company investor AMCI Investments.
They've all agreed that Mineral Resource will increase its stake in the project from 40 per cent to 57 per cent by funding $1.3 billion of the project's capital expenditure via a loan.
