Mineral Resources (ASX:MIN) closes up on ASX today. Why?

Highlights 

  • Mineral Resources enters unique development partnership for Pilbara assets.
  • The Company signs deals with Hancock and Roy Hill.
  • The Company shares see a bullish push on ASX.

Mining services company Mineral Resources (ASX:MIN) shared today that it has entered into an agreement with Hancock Prospecting Pty Limited and Roy Hill Holdings Pty Limited.

Key Highlights-

  • Under the agreement, Roy Hill will provide services to both MIN and Hancock for development and other operational assistance of the Project. It will also provide rail haulage and port services.
  • The Project is in line with MRL’s strategy to unlock stranded deposits in the Pilbara.
  • MIN with this project will develop pit-to-port solutions and expand its capability as a long-term, low-cost supplier of iron ore globally.
  • However, project development will be subject to permission from Pilbara Ports Authority (PPA) on a capacity allocation for the Project, and other necessary approvals and agreements to operate berth 3 and associated supporting port infrastructure.
  • MIN and Hancock have to also take a positive final investment decision to proceed with the Project after successful feasibility study.
  • MIN and Hancock will form a joint venture to obtain necessary approvals from the PPA and develop and operate the iron ore export facility at Port Hedland.
  • When developed, the Project will provide MIN a port and rail haulage solution to deliver ore mined from its deposits to Port Hedland.

Haulage solutions are key to unlocking stranded assets in the Pilbara and are cost-effective for MIN to develop its Pilbara assets.

As a result, on ASX today, MIN shares have closed up over 3.36% at AU$44.99 per share.

Bottom line-

MIN’s agreement with Hancock and Roy Hill is a one-of-a-kind partnership and infrastructure agreement in the Australian resources industry, enabling MIN to explore significant value from the Pilbara region.

Also Read- Australian Bond Exchange (ABE) all set to float on ASX. Here’s how to invest

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