Fenix Resources awards two major contracts for WA Iron Ridge Project

Monica Gameng   |   October 27, 2020
Iron Ridge Project (cr: Fenix Resources)

Fenix Resources is on track to delivering its first iron ore sales in early 2021 from its Iron Ridge iron ore project in Western Australia as the company awards two major work contracts for the mine development. 

The first contract is valued at $185 million and has been awarded to MACA Limited. This contract is for drill and blast as well as mining, crushing and screening works at the Iron Ridge operations. 

Early works have already commenced on site and MACA is currently mobilising heavy earthmoving equipment on site. 

MACA is set to begin open pit mining and screening activities this quarter. 

“We have been interacting with MACA on all aspects associated with the Iron Ridge Project for well over a year now, and we are pleased that this relationship will continue as we transition to production in the near-term,” Fenix Resources Managing Director Rob Brierley said. 

“We are pleased to have been awarded the Iron Ridge Open Pit Mining and Crushing and Screening contract and look forward to working with Fenix as it transitions towards operations,” MACA Limited CEO Mike Sutton said. 

The second contract is valued at $360 million and has been awarded to Fenix Newhaul Pty Ltd – an incorporated joint venture company between Fenix Resources and Craig Mitchell, the founder and former owner of Mitchell Corp. 

This contract award will get Fenix Newhaul to undertake road transport of iron ore from the Iron Ridge operations. 

Fenix Newhaul has already ordered prime movers as well as trailers that are going to be used for the project. Works under this contract is due to begin in December 2020 and will be carried over the six-year mine life of the Iron Ridge Project. 

“Road transport was quickly identified as the largest cost component for the commercialisation of Iron Ridge. We took an innovative approach to optimise this aspect and we strongly believe that the joint venture concept with Craig Mitchell has been the right way to go. 

“Fenix Newhaul plan to commence operations with a mix of sub-contract and owned fleet and they are actively recruiting for personnel, with most of their employees to be Geraldton-based,” Mr Brierley said. 

Fenix Resources estimates a total of approximately 350 full-time equivalent direct and indirect jobs are going to be created throughout the supply chain, including about 70 jobs on site. 

Geraldton will benefit most from this project, with up to 100 jobs to be created in the region. This includes about 70 roadtrain drivers and around 30 jobs at the fleet maintenance depot. Other opportunities will also be created at the Port as well as for local businesses and contractors involved in the project. 

The Iron Ridge Project is located about 600 kilometres north-northeast of Perth and 67 kilometres northeast of the township of Cue in the Murchison region. The mine is also located about 350 kilometres from the port of Geraldton to the southwest. 

Source: Fenix Resources (1, 2, 3); Australian Mining (1, 2); MACA LimitedProactive InvestorsInternational Mining 

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Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1,000 posts. She truly is an industry expert.
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