In 2020 Fenix Resources awarded the Iron Ridge drill & blast, mining, and crushing & screening contract for the Iron Ridge Project to MACA Limited (MACA).
MACA is a reputable contractor with a strong track record of operational experience in the mining sector and has been significantly involved in the Australian iron ore industry having carried out long term works for Atlas Iron Limited and Crossland Resources.
Early stage works commenced in September 2020 through the use of local contractors, with MACA currently mobilising heavy earthmoving equipment to site. Open pit mining and crushing and screening operations commenced in Quarter 4 2020.
In the second half of 2020 Fenix Resources Limited executed a Port Lease Agreement and a Port Access and Services Agreement with Mid West Ports Authority (MWPA) for the export of iron ore products through the Port of Geraldton.
The Agreements allow Fenix to export 1.25 million tonnes per annum of iron ore. The initial term of the agreements is four years, with two additional two-year extensions able to be triggered at Fenix’s election.
Fenix’s flagship Iron Ridge Project has been in development since September 2020 and commenced mining, crushing and screening, and road transport operations in December 2020.
Fenix Resources worked closely with MWPA for well over a year, and it culminated into significant commercial agreements that enable Fenix to commence iron ore production and to export its first shipment of product in early 2021.
Fenix Newhaul is the incorporated joint venture company established to implement the strategic alliance between Fenix Resources and Craig Mitchell, the founder and former owner of Mitchell Corp, a major supplier of transport and logistics services to the Western Australian mining industry, as announced on 7 May 2019.
Fenix Newhaul is 50% owned by Fenix and 50% owned by Newhaul Pty Ltd (formerly Minehaul Pty Ltd), an entity controlled by Mr Mitchell.
The contract is valued at around $360 million for the estimated 6 year life-of-mine, based on a terminal gate diesel price ex Geraldton of around $1.34 per litre (current diesel price is around $1.05). Worked commenced in December 2020.
In mid 2020, Fenix Resources Limited executed an Mining Cooperation and Benefits Agreement with the Wajarri Yamatji Native Title Claimant # 1 Group, thereby paving the way to develop the Company’s flagship high-grade DSO iron ore project – Iron Ridge, located near Cue in Western Australia.
The MCBA includes a modest sign-on fee, ongoing royalty payments, indigenous employment targets and the ability for Wajarri-controlled businesses to participate in opportunities at both Iron Ridge and in Geraldton, where the road transport and logistics joint venture entity is based. Settlement of the Sign-on Fee was via the issuance of 2.5 million new shares in Fenix to a nominee of the WY Group.