Fenix Resources continues to achieve key milestones as it progresses its Beebyn-W11 mine in WA towards production.
The company awarded the Beebyn-W11 mining contract to MACA this week, with the prominent contractor to provide drill and blast, mining, and crushing and screening operations at the mine.
With MACA mobilising in the June quarter, Fenix expects first production to be shipped during the September quarter, with a goal to ramp up to a four-million-tonne-per-annum (Mtpa) run rate during 2025.
Beebyn-W11 boasts a JORC measured and indicated mineral resource estimate (MRE) of 20.5 million tonnes at 61.3 per cent iron.
Fenix landed the exclusive right to mine and export up to 10 million dry metric tonnes of iron ore from Beebyn-W11 in October 2023 as part of an agreement with Sinosteel.
The mine will be Fenix’s third operation in the Mid-West region, joining the Iron Ridge mine 20km away and the Twin Peaks operation.
Fenix has grown its business to include three integrated segments: mining, logistics and ports. The company acquired Newhaul haulage business in July 2022 to bolster its logistics arm.
Fenix has a long-term lease agreement and export allocation at Geraldton Port, which enables it to export 4Mtpa of iron ore from the facility.
The company also sees the acquisition of CZR Resources as a potential growth opportunity.
An all-scrip takeover offer would see CZR shareholders receive 0.98 Fenix shares for every CZR share at an implied value of $0.30 per share.
While Gold Valley and the Robe River joint venture including Rio Tinto, Nippon Steel and Mitsui & Co. have also entered the fray to acquire all or a portion of CZR, CZR unanimously recommends that all CZR shareholders accept Fenix’s offer.
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