Wedoany.com Report-Sept. 7, Fenix Resources has entered a binding agreement with Sinosteel Midwest Corporation (SMC) for a 30-year exclusive right to mine and export iron ore from the Weld Range Hematite Iron Ore Project in Western Australia’s mid-west region. The project, located near Fenix’s Iron Ridge Iron Ore Mine, features a high-quality hematite deposit with an estimated 290 million tonnes at 56.8% iron grade.

Fenix now holds the exclusive mining and export rights for the entire Weld Range Project.

The deal involves a $60 million cash payment over two years, a production royalty of $4–$5 per dry metric tonne, and a profit-sharing arrangement of 10% of net profit after tax when iron ore prices are at or below $100 per tonne, rising to 15% above this threshold. Fenix will fund the transaction using existing cash reserves and operational cash flows, securing 100% of the project’s earnings post-payment.

The Weld Range project, including the Beebyn-W11 deposit, consists of direct shipping ore, enhancing Fenix’s operational capabilities. The company will leverage its existing infrastructure, including road haulage and port logistics, to maximize the project’s value. Fenix executive chairman John Welborn stated: “Fenix has delivered on its strategy to unlock the value of the stranded iron ore deposits of Western Australia’s mid-west region. Securing 290mt of high-quality hematite direct shipping iron ore immediately surrounding our existing operations in the Weld Range is a game-changer for Fenix.”

A feasibility study is underway to expand production, focusing on extending the Beebyn-W11 mine plan and developing nearby deposits. Fenix aims to increase its annual production to 10 million tonnes, aligning with its growth strategy. SMC retains the right to match any third-party offer for up to 100% of Weld Range’s iron ore. If SMC matches an offer, it will enter an offtake agreement mirroring the third-party terms; otherwise, Fenix can accept the external proposal.

In March 2025, Fenix partnered with MACA, part of the Thiess Group, to develop the Beebyn-W11 project, supporting its goal to reach a 4-million-tonne annual production rate by the end of 2025. The Weld Range agreement strengthens Fenix’s position in the iron ore market, contributing to sustainable economic growth in Western Australia.