Fenix Resources Ltd has signed a contract with MACA Ltd, a subsidiary of Thiess Group, for drill and blast, mining, and crushing and screening operations at the Beebyn-W11 iron ore mine. It added that the award of the Beebyn-W11 mining contract represents an important milestone in Fenix’s plans to ramp up production to 4 Mt/y during 2025.
Beebyn-W11 is a high-quality iron ore deposit located in Western Australia’s Mid-West region, approximately 20 km from Fenix’s Iron Ridge Iron Ore Mine. Fenix secured an exclusive right to mine and export up to 10 million dry metric tonnes of iron ore from Beenyn-W11 from Sinosteel Midwest Corporation in October 2023. Beebyn-W11 is one of a number of similar high quality iron ore deposits which makes up Sinosteel’s Weld Range Project.
Subject to the 10 Mt right to mine agreement, Fenix has defined a JORC Ore Reserve at Beebyn-W11 of 10 Mt at 62.2% Fe, comprising 8.3 Mt in Proven and 1.7 Mt in Probable Ore Reserves. The project is expected to produce 1.5 Mt/y of iron ore at an average C1 cash cost of A$77.5 per wet metric tonne (wmt) FOB Geraldton (US$50.40/wmt).
All required mining approvals for Beebyn-W11 have been received by Fenix, including the approval of Fenix’s Mining Proposal by the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS). The award of the mining contract will allow site mobilisation to commence in the June 2025 quarter. Production from Beebyn-W11 is expected to be shipped during the September 2025 quarter.
Beebyn-W11 will be Fenix’s third operating mine in the Mid-West and will enable the company to achieve the targeted total production run rate of 4 Mt/y during 2025.
A key operational requirement for production from Beebyn-W11 is the construction of a private haul road connecting the new mine to Fenix’s existing operations at Iron Ridge. Construction of the 20 km private haul road is scheduled to commence in March 2025, following receipt of the Native Vegetation Clearing Permit from DEMIRS. Fenix has executed a Cultural Heritage Agreement for the Beebyn-W11 haul road with the Wajarri Yamaji Aboriginal Corporation (WYAC) and entered into a Deed of Covenant under the Native Title and Heritage Sustainable Benefits Agreement with Sinosteel Midwest Corporation and the Wajarri Yamaji People, ensuring compliance with heritage and environmental commitments.
The haul road is a strategic infrastructure asset that will connect the new mine to the public road system that provides a direct and efficient route from the Weld Range to Fenix’s Geraldton port facilities.
Fenix operates a unique fully integrated mining and logistics business. High quality iron ore products are transported by road to Geraldton using the company’s 100% owned Newhaul Road Logistics business. Fenix’s wholly owned Newhaul Port Logistics business operates its own loading and storage facilities at the Geraldton Port, with storage capacity of more than 400,000 t and loading capacity of more than 5 Mt/y.
Fenix’s diversified Mid-West iron ore, port and rail asset base it says provides an excellent foundation for future growth. These assets include the Iron Ridge mine, the Beebyn-W11 deposit, the Twin Peaks iron ore mine, the Shine iron ore mine, the Newhaul Road Logistics haulage business which includes a state-of-the-art road haulage fleet, two rail sidings at Ruvidini and Perenjori, as well as the Newhaul Port Logistics business that operates three on-wharf bulk material storage sheds at the Geraldton Port.
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