ASX-listed Mineral Resources (MinRes) has received unconditional approval from the Foreign Investment Review Board (FIRB) for the sale of a 49% stake in the Onslow Iron haul road to investment funds managed by Morgan Stanley Infrastructure Partners (MSIP), with total expected proceeds amounting to A$1.3-billion.

With all conditions precedent now satisfied, the transaction is set to be completed within 15 business days.

Upon completion, MinRes will receive an upfront cash payment of A$1.1-billion from MSIP. An additional deferred payment of A$200-million will be made, contingent upon Onslow Iron achieving a run rate of 35-million wet metric tonnes a year in any quarter before June 30, 2026.

Following the receipt of the upfront payment, MinRes will cancel its $750-million undrawn bridge facility.

“Our partnership with Morgan Stanley Infrastructure Partners will release A$1.3-billion of value from the haul road, highlighting the quality of earnings that Onslow Iron is set to achieve," MD Chris Ellison said.

"Importantly, under this unique partnership, MinRes maintains majority exposure to the stable earnings that the haul road will deliver over the project’s life.”

Onslow Iron is scheduled to be operationally complete next month, with the ramp-up progressing to plan and the project cash flow positive for MinRes from October.

The Onslow Iron project has shipped more than one-million tonnes of iron-ore since achieving first ore on ship in May, with exports ramping up in line with the project’s plan.

Shipments reached 134 000 t in July, increased to 532 000 t in August, and are expected to hit 720 000 t in September.

COST SAVINGS
Meanwhile, MinRes announced cost-cutting measures in response to low lithium prices and softer iron-ore prices.

The company has identified about A$180-million in capital expenditure savings and A$120-million in operational cost savings for the 2025 financial year, including reductions in its lithium division.

Cost-saving measures in lithium include transitioning to a two weeks on, one week off roster (from two weeks on, two weeks off) at the Mt Marion and Wodgina operations. These changes, already communicated to employees, are expected to be implemented over the next four to six weeks.

The company noted that there would be no change to the 2025 financial year production guidance for lithium or the volume guidance for its mining services division.