Onslow Iron $200M contingent payment confirmed

Mineral Resources (ASX: MIN) will receive a $200m contingent payment from Morgan Stanley Infrastructure Partners (MSIP) in early November as part of the private haul road transaction. 

As announced in September last year, investment funds managed by MSIP paid an upfront consideration of $1.1b for a 49% interest in the Onslow Iron Road Trust, which generates a life-of-mine CPI-adjusted tolling fee per tonne of iron ore loaded at the port from MinRes’ Onslow Iron project in WA. 

Between 1 August 2025 and 27 October 2025, 8.75mt of iron ore was loaded onto MinRes transhippers at the Port of Ashburton, which satisfied the contingent payment condition by achieving a 35mt per annum run rate over three months. 

MinRes managing director Chris Ellison says achieving nameplate capacity at Onslow Iron over three consecutive months was another significant achievement for the MinRes team and its partners. 

“I’m proud of the dedication and expertise that has brought the project to consistent nameplate levels, showcasing the extraordinary capability of our people and the strength of our innovative pit-to-ship supply chain,” he said. 

“Securing the contingent payment is a strong financial outcome that rewards this operational success, and we thank MSIP for their continued support. 

“We remain focused on safely operating Onslow Iron at nameplate capacity going forward.” 

Onslow Iron’s dedicated private haul road runs 150km from Ken’s Bore to the Port of Ashburton and spans 11m sealed from edge to edge — two metres wider than typical public roads used for heavy haulage in the Pilbara. 

In September, MinRes safely completed upgrades to the road, including seal binder upgrades and cement stabilisation, as well as asphalting along its entire length. 

MinRes chair Malcolm Bundey says this milestone again demonstrated MinRes’ ability to execute major projects and, more specifically, operate Onslow Iron consistently at nameplate levels. 

“It also reinforces the quality of our world-class mining services business, which has driven the successful ramp-up of the project’s pit-to-ship supply chain,” he said. 

“The additional $200m payment continues to strengthen MinRes’ financial position and marks another important step in our program of organic deleveraging and disciplined balance sheet management.”