Fenix Resources plans 10 Mtpa Weld Range Project expansion

Fenix Resources (ASX:FEX) has released the results of a scoping study on its Weld Range Iron Ore Project, outlining a strategy to expand production, reduce costs, and extend the mine’s operational life to 2042.

The study aligns with Fenix's Weld Range right-to-mine agreement with Sinosteel Midwest Corporation, part of China Baowu Steel Group, targeting an export production rate of approximately 10 million tonnes per annum.

Key findings include a ramp-up of production from 6 Mtpa in 2028 to 10 Mtpa by 2031, with life-of-mine cash costs projected at around $55.4/wmt FOB Geraldton—27% below the FY26 guidance midpoint.

The project is expected to reach an all-in breakeven price at a 61% Fe CFR index price of roughly US$67/dmt.

Financial metrics are compelling, with a pre-tax NPV10 of approximately $1.2 billion, an IRR of ~60%, a payback period of 2.6 years, cumulative pre-tax free cash flow of ~$2.5 billion, and average annual EBITDA of ~$235 million.

Infrastructure improvements include a planned 244 km private haul road, reducing port haulage distance by 20% and allowing a 70% increase in payload per truck.

The mine is expected to produce high-grade iron ore averaging 58% Fe over its life, with early-stage Beebyn ore at ~61% Fe offset by lower-grade Madoonga ore at ~56% Fe.

Total development capital is estimated at ~$521 million, largely required from 2028, giving Fenix time to assemble a funding package from operational cash flows and potential external debt.

A definitive feasibility study is underway, with completion expected in June 2026 and a final investment decision anticipated in 2028.