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Chris Ellison-led Mineral Resources has struck an agreement with Gina Rinehart’s Hancock Prospecting to jointly pursue the development of a new iron ore export berth at Port Hedland’s South West Creek. The agreement proposes that Hancock subsidiary Roy Hill Holdings, which already operates two berths at South West Creek, would help develop the new berth and provide rail haulage and port services. The agreement will likely make it easier for the state government and the Pilbara Ports Authority to assess multiple competing applications for increased capacity at the famously congested inner harbour at Port Hedland.

Gina Rinehart is winding up a record year for her diversified business empire with a deal to buy nearly half of Australian gas producer Senex Energy in a $900 million partnership with South Korea steel giant Posco. Ms Rinehart’s flagship, Hancock Prospecting, notched a sharply increased record $7.3 billion profit for the year to June 30, underscoring its emergence as one of the country’s most profitable companies. The performance mainly reflected her $4b share of Roy Hill’s dividends.

Speech by Executive Chairman Mrs. Gina Rinehart, Thursday 2 December 2021.

MINERAL Resources has locked in port and rail agreement with Hancock Prospecting, ensuring it can export iron ore from its assets in Western Australia’s Pilbara that were once considered stranded. MinRes and Hancock announced the agreement on November 29, which will involve the development of an iron ore export hub at the Port Hedland Standley Point Berth 3, in South West Creek. “Our long-stated strategy is to transform from short-life, high-cost mines to lower-cost, longer-life operations underpinned by innovative infrastructure solutions.”

While co-operation among Pilbara iron ore miners is rare, MinRes has an existing relationship with Hancock via its mining services division. “We look forward to working with Hancock, Roy Hill, PPA and the state government to progress this project which would help unlock stranded assets in the Pilbara and would create thousands of jobs for West Australians for years to come,” Ellison said.

Ellison said yesterday the agreement with Hancock and Roy Hill was the first of its kind in the Australian resources industry. “Our long-stated strategy is to transition from short-life, high-cost mines to lower-cost, longlife operations underpinned by innovative infrastructure solutions,” he said.

30 November, 2021.

Mineral Resources’ infrastructure agreement with Roy Hill and Hancock Prospecting could enable the ASX-listed miner to develop stranded iron-ore resources such as its Marillana project, Macquarie says. “A development of Marillana and the infrastructure agreement presents upside risk to our base-case earnings and valuation for MIN,” says Macquarie, which doesn’t factor that project into its base case for Mineral Resources at present

29 November, 2021.

The ASX-listed MRL told shareholders that haulage solutions were key to unlocking stranded assets in the Pilbara and this agreement would provide a cost-effective solution for MRL to develop its Pilbara assets. “We are pleased to have entered into the port and rail agreement with Hancock and Roy Hill. This partnership and infrastructure sharing is the first of its kind in the Australian resources industry and would enable significant value to be unlocked for MRL in a sustainable manner,” said MD Chris Ellison.

The joint venture agreement represents a change of tick by Mr Ellison, who has previously talked up Mineral Resources’ capacity to develop two new export berths with a combined capacity of 40 million tonnes per annum. The agreement will likely make it easier for the state government and the Pilbara Ports Authority to assess multiple competing applications for increased capacity at the famously congested inner harbour at Port Hedland.

Hancock Prospecting outlined its plans for a number of new iron ore developments both at its own 1Bt-plus Mulga Downs deposit and through subsidiary Atlas Iron in its annual report on Friday, in which Rinehart’s company posted an eye-watering $7.3 billion profit for FY2021. MinRes, Hancock and Roy Hill have entered an agreement to jointly investigate the development of a facility at the Stanley Point Berth 3, in which Roy Hill would develop and operate the project including a rail haulage and port services. MinRes boss Chris Ellison said the deal will unlock stranded assets in the Pilbara as the company seeks to transition from higher cost production to low cost, long life assets.