Mineral Resources (ASX:MIN) completed the sale of a 49% interest in the Onslow Iron haul road to Morgan Stanley Infrastructure Partners.
The deal was finalised following the receipt of an upfront cash payment of $1.1 million from MSIP on Sept. 24.
The company has confirmed that its undrawn bridge facility of US$750 million ($1.1 million) will now be cancelled.
Additionally, an extra deferred cash consideration of $200 million is expected, contingent on the haul road reaching a 35 million wet metric tonnes per annum run rate for any quarter before the end of June 2026.
Under this partnership, MinRes will retain majority ownership and operational control of the haul road, ensuring continued alignment with the company’s long-term goals.
This infrastructure is vital to unlocking iron ore deposits in the West Pilbara region. The 150km road, which connects Ken's Bore mine site to the Port of Ashburton, is on track for completion in October.
"I'm pleased to officially welcome MSIP as a partner in the Onslow Iron Project. This partnership is yet another strong endorsement of Onslow Iron’s world-class credentials and showcases MinRes' ability to unlock significant capital from our portfolio of assets," stated Chris Ellison, Managing Director of Mineral Resources.
Tim Cooper, Managing Director of MSIP, added, "We are very pleased to partner with Mineral Resources as part of the Onslow Iron project and are proud to be the co-steward of the Onslow Iron Haul Road, a critical transportation infrastructure asset in the West Pilbara. We value MinRes' exceptional operatorship and are excited to explore further opportunities to deepen our partnership."