Mineral Resources Limited (ASX: MIN) has confirmed that the sale of a 49% interest in the Onslow Iron haul road to investment funds managed by Morgan Stanley Infrastructure Partners (MSIP) has been completed.
Completion of the transaction was achieved after MinRes received the upfront cash consideration of $1.1 billion from MSIP on 24 September 2024. MSIP is a private infrastructure investment platform within Morgan Stanley Investment Management.
As previously announced, the company’s undrawn bridge facility of US$750 million will now be cancelled.
The additional deferred cash consideration of $200 million will be paid by MSIP to MinRes subject to the Onslow Iron haul road achieving a 35 million wet metric tonnes per annum run rate for any quarter before 30 June 2026.
Under the partnership with MSIP, MinRes retains majority ownership and exclusive rights to use, operate and maintain the haul road as well as majority exposure to the stable earnings the haul road will deliver over the life of Onslow Iron.
The haul road is a key component of an innovative transportation infrastructure solution developed by MinRes, which has unlocked stranded iron ore deposits in the West Pilbara region of Western Australia.The 150km haul road, which links the Ken’s Bore mine site to the Port of Ashburton, remains scheduled for completion in October 2024. Onslow Iron delivered first ore on ship in May 2024.
“I’m pleased to officially welcome MSIP as a partner in the Onslow Iron project,” MinRes managing director Chris Ellison said.
“This partnership is yet another strong endorsement of Onslow Iron’s world-class credentials and showcases MinRes’ ability to unlock significant capital from our portfolio of assets.”
MSIP managing director Tim Cooper added:
“We are very pleased to partner with Mineral Resources as part of the Onslow Iron project and are proud to be the co-steward of the Onslow Iron haul road, a critical transportation infrastructure asset in the West Pilbara.
“We value MinRes’ exceptional operatorship and are excited to explore further opportunities to deepen our partnership.”
