MinRes autonomous truck route
AUSTRALIAN mining company Mineral Resources (MinRes) will sell almost half of a dedicated haul road in Western Australia for $1.3 billion and in a world first, employ fully autonomous roadtrains for ore haulage.
MinRes this month entered into a binding agreement with Morgan Stanley Infrastructure Partners for the sale of a 49 per cent interest in Onslow Iron’s dedicated haul road.
The 150km long road links MinRes’ Ken Bore mine site with the Port of Ashburton in Onslow.
The road will be fully sealed, fenced and equipped with fibre optic cabling to support the operation of MinRes’ autonomous road trains.
MinRes said that the haul road was a key component of an innovative transportation infrastructure solution that it developed to access isolated iron ore deposits in the West Pilbara region of WA.
MinRes will retain majority ownership and exclusive rights to use, operate and maintain the haul road. The arrangement will ensure seamless mine-to-ship delivery of Onslow Iron product to customers.
The project will have the shortest pit to port distance in the industry, with iron ore transported 150km from the mine site to the port.
In a world first, the product will be transported by jumbo autonomous road trains via a dedicated fenced and sealed haulage road.
Once the product reaches the Port of Ashburton, it will be shipped via fully enclosed transhippers to Capesize vessels anchored 40km off the coast.
The project is forecast to ship around 35 million tonnes of iron ore per year, with an expected mine life of 30 plus years.
MinRes has taken delivery of its 100th Kenworth C509 for the autonomous fleet.
It joins a fleet of C509s being prepared to carry 330-tonne payloads without drivers for the Onslow Iron project.
The first prime movers equipped with Hexagon autonomous technology were just recently transported 1280km to Onslow via drop-deck trailers.
All of the C509s will be based at MinRes’ truck maintenance facility near Onslow while trials and verification are undertaken with safety drivers before the fleet transitions to autonomous operations.
From there, the full fleet of 150 C509s will be fitted with autonomous technology at a rate of about 10 each month.
In organising the haul road for the autonomous fleet, MinRes engaged with Morgan Stanley Infrastructure Partners following a competitive process involving leading global infrastructure investors. MinRes expects total after tax net cash proceeds of $1.2 billion.
The transaction vehicle will receive a life-of-mine CPI-adjusted tolling fee per tonne of iron ore transported through the Onslow haul road of $8.04 (100% basis), capped at 40 million wet metric tonnes per annum (Mtpa).
The tolling fee will be reset at a reduced rate after 30 years. Any tolling payments for volumes above 40Mtpa will be fully owned by MinRes.
MinRes managing director Chris Ellison said: “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.
“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.
“The transaction also establishes access to a new pool of capital to further accelerate our growth and continue to deliver returns for our shareholders.”
The introduction of a new partner at an attractive cost of capital is consistent with MinRes’ focus on long-term shareholder value creation and agile approach to capital management.
MinRes’ Onslow Iron project is set to redefine mining in Western Australia through world-first autonomous road trains, industry leading dust free transport and resort-style workforce accommodation. The transformational Onslow Iron project is one of the largest iron ore projects currently under development in Australia.
For a great deal on financing your new purchase, contact Australia's best reviewed finance broker on 1300 EFTEAM (1300 338 326) today or visit CreditOne.com.au
