Mineral Resources to sell minority stake in Onslow haul road for $1.3b

Mineral Resources will retain majority ownership of the haul road.
Mineral Resources will retain majority ownership of the haul road.

Mineral Resources (ASX: MIN) is set to sell its 49% interest in the Onslow Iron project’s haul road to Morgan Stanley Infrastructure Partners for $1.3b.

The 150km fully sealed and fenced dual lane haul road links the Ken’s Bore mine site to the Port of Ashburton and is equipped with fibre optic cabling to support Mineral Resources’ autonomous road trains.

Mineral Resources will retain majority ownership and exclusive rights to use, operate and maintain the Onslow haul road, ensuring seamless mine-to-ship delivery of iron.

Proceeds are payable in cash and comprise upfront consideration of $1.1b and a deferred consideration of $200m that is subject to achieving a 35mtpa run rate for any quarter before June 30, 2026.

Mineral Resources managing director Chris Ellison commented on the sale.

“I am proud of the strategic relationships we have formed with global industry leaders and pleased to welcome Morgan Stanley Infrastructure Partners as a partner in the Onslow haul road,” he said.

“This transaction is a strong endorsement of Onslow iron’s world-class credentials, after the project last month delivered first ore on ship ahead of schedule.

“As the first transaction of its kind in the Australian iron ore industry, it showcases the considerable value of MinRes’ portfolio of infrastructure assets and our ability to unlock significant capital.”

Subject to the finalisation of project conditions and approval from the Foreign Investment Review Board, completion of the sale is expected in the second half of the year.