Fenix Resources completes first Twin Peaks iron ore shipment

Fenix Resources (ASX:FEX) has hauled, loaded and shipped the first shipment of iron ore from the Twin Peaks direct shipping iron ore project in WA.

This first shipment contained 59,275t of +60% iron “Fenix TP lump” direct shipping ore and product from Twin Peaks will boost Fenix’s iron ore production and revenues.

In November 2023, Fenix executed an ore purchase agreement with 10M, granting it the right to purchase 500kt of high-grade ore from Twin Peaks.

Under the agreement, 10M is responsible for all mining and processing activities up until the ore is loaded onto Fenix haul trucks at the mine site stockpile. Fenix will assume title and ownership of the ore upon collection at the mine gate for consideration to 10M of a fixed $40/wmt mine gate payment.

Fenix is also responsible for all haulage, storage, loading and marketing of the iron ore, retaining a fixed amount of $60pwmt to cover transport, port logistics, marketing and sales expenses incurred.

Fenix executive chairman John Welborn says the company is excited with the maiden shipment.

“Our partnership with 10M has supported their transition from explorer to producer and is unlocking value for both companies as well as growing the Mid-West economy,” he said.

“Fenix’s unique integrated mining, logistics and port services businesses provides an exciting platform for growth for both the company and the many projects in the region seeking to advance production.”

Mining is continuing at Twin Peaks and Fenix expects to complete the haulage, storing, loading, shipment and marketing of the 500kt of Twin Peaks iron ore during 2024.