Mineral Resources (MinRes) has partnered with Hancock Prospecting and Roy Hill to investigate the development of a new iron ore export facility in Port Hedland, Western Australia.
Stanley Point Berth 3 in South West Creek is shaping as a viable option for the major iron producers to expand their export capacities.
The agreement would see Roy Hill provide services to MinRes and Hancock to develop and operate the facility, including rail haulage and port services.
MinRes managing director Chris Ellison said collaboration of this kind would shape the future of Australia’s mining industry.
“We are pleased to have entered into the port and rail agreement with Hancock and Roy Hill,” he said.
“This partnership and infrastructure sharing is the first of its kind in the Australian resources industry and would enable significant value to be unlocked for MRL in a sustainable manner.”
The development comes in line with MinRes strategy to become a lower-cost, long-life iron ore producer, as outlined by Ellison at the company’s annual general meeting (AGM) earlier in November.
Ellison said this strategy was reliant on innovative infrastructure solutions such as the port and rail agreement.
“Developing our stranded assets will provide additional growth for MRL’s unique mining services build-own-operate model,” he said.
“We look forward to working with Hancock, Roy Hill, PPA (Pilbara Ports Authority) and the State Government to progress this project which would help unlock stranded assets in the Pilbara and would create thousands of jobs for West Australians for years to come.”
Once the agreement is signed off, MinRes and Hancock will form a joint venture as they seek the necessary approvals to develop Stanley Point.
At MinRes’ AGM, Ellison also said the Ashburton export hub would be pivotal for the company.
The PPA began investigating the trade of iron ore from the Port of Ashburton around September, and it has since been revealed that MinRes is doing a bulk of work to make it happen.