Fenix Resources (ASX: FEX) is a high grade, high margin iron ore producer located in the prolific mid-west mining region of Western Australia.

The Company’s 100% owned, flagship Iron Ridge Iron Ore Project is a premium DSO deposit that hosts a high grade, JORC 2012 compliant resource of 9.8 Mt @ 64.4% Fe, which represents some of the highest grade iron ore in Western Australia. Production commenced in December 2020 following a rapid three-month development period, and first sales were generated in February 2021, shipped from the Company’s port facility at Geraldton. Approximately 1.5 million tonnes of premium ore have been exported to date, generating solid cash flow.

High grade iron ore attracts a premium price on the seaborne market, as a purer product results in lower emissions. Chinese steelworks are demanding high grade ore to meet increasingly strict government regulations.

The Company is led by a proven team with deep mining experience and benefits from strategic alliances and agreements, including a JV with Fenix Newhaul Pty Ltd for haulage, binding agreements with the Mid West Ports Authority for the use of its Geraldton Port facilities, a 50% off-take arrangement with Sinosteel International Holding Company Limited and an exclusive marketing agreement with Atlas Iron Pty Ltd for the remaining 50% of product sales.

The Company is focused on promoting opportunities for local businesses and the community; to date, the project has generated some 180 local jobs. Fenix is proud to employ a 40% indigenous workforce and be in partnership with the Schwarze Brothers and other leading service providers.

Sinosteel International Holding Co.

Fenix Resources Limited executed a binding offtake terms sheet with Sinosteel International Holding Company Limited in 2020. Sinosteel International Holding Company Limited is a Hong Kong-based export and import company, wholly owned by Sinosteel Group Corporation Limited, a Chinese State Owned Enterprise.

The Sinosteel Binding Offtake Terms Sheet is for 50% of the estimated iron ore production and sales and spans the life-of-mine, with annual review periods. Sales will be made on a free-on-board (FOB) basis, and the pricing structure includes a premium to reflect the higher iron content of the Iron Ridge iron ore.

Atlas Iron

In August 2020 Atlas Iron was elected to act as the marketing agent for 50% of the Iron Ore projected to be mined and sold from the Iron Ridge Project Mining Lease (M20/118-I).

In May 2016, Fenix’s 100% subsidiary, Prometheus Mining Pty Ltd acquired the Iron Ridge Project from Weld Range Iron Ore Pty Ltd, a wholly owned subsidiary of Atlas Iron.

The Sale and Purchase Agreement executed by the parties provided Atlas Iron a first right of refusal to act as the exclusive marketing agent in respect of up to 50% of the iron ore projected to be mined and sold from M20/118-I, subject to it meeting commercial terms. The entire current Ore Reserve and Mineral Resource for the Iron Ridge Project is contained within M20/118-I.