MinRes and Brockman to form $300m Marillana iron project JV

Mineral Resources (MinRes) has entered a farm-in and joint venture (JV) agreement with Hong Kong-based Brockman Mining to acquire 50 per cent of the Marillana iron ore project in the Pilbara, Western Australia. The deal is subject to regulatory approvals in Australian and Hong Kong.

MinRes is to spend $250,000 on exploration and development across the Marillana tenements and complete process design of the project’s processing plant, as well as finalise and optimise mine layout in order to acquire its half of the project.

Once the JV is finalised, Brockman and MinRes will co-operate on a 20 million tonnes a year (20Mt/y) iron ore export operation, with the potential to increase to 30Mt/y. The operation is expected to cost upwards of $300 million, to be split down the middle between the two companies. MinRes will handle pit-to-port transport using its Pilbara light rail system to Port Hedland for shipping to Asia.

MinRes managing director Chris Ellison said that he was extremely pleased to enter into the agreement with Brockman and that the two companies had a “shared vision” for the future of Marillana.

Brockman chairman Kwai Sze Hoi said the joint venture was a “logical and welcome outcome”.

“This joint venture delivers all of the elements needed for the successful development of the wonderful Marillana orebody, including {MinRes’s} Pilbara project development and mining services capability and expertise,” he said.

“Brockman is confident that Marillana’s superior quality ore will take its rightful place in the seaborne iron-ore trade very soon.”

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