Fenix Resources is moving ahead with its iron ore project in Western Australia after appointing MACA as its mining contractor.
Fenix Resources is moving ahead with its iron ore project in Western Australia after appointing MACA as its mining contractor.
Fenix is planning a single open-pit operation about 490 kilometres inland from Geraldton, in WA’s Murchison region.
A feasibility study released late last year confirmed the 7.76 million tonne Iron Ridge project as a low-cost operation with a high grade of 63.9 per cent iron.
Fenix expects its sole project to produce 1.25mt per annum over an initial 6.5-year mine life.
Iron Ridge has modest initial capex of $11.9 million, 44 per cent of which will not be paid until after first ore shipment. Fenix has not yet stated its anticipated production and shipment dates.
MACA will provide open-pit mining operations, as well as crushing and screening services, to Iron Ridge under a six-year, $185 million contract.
Early-stage work began last month, Fenix said.
MACA is currently mobilising heavy earthmoving equipment to the site while open-pit mining and crushing and screening operations are due to begin in the current quarter.
Fenix is a new iron ore client for MACA, with the contractor having previously provided services to Atlas Iron and Crossland Resources.
Fenix chief executive Robert Brierley said MACA had vast experience in iron ore operations.
"MACA ... has essentially offered Fenix a one-stop shop for all our service requirements leading up to the transport of the ore from site to the port of Geraldton," he said.
MACA chief executive Mike Sutton said the contract built on the company’s workload in the iron ore sector.
It is expected to boost MACA’s contracted work in hand to $2.9 billion.
Its WIH and work already delivered in the current financial year stands at $868 million, of which $695 million is mining sector work, MACA says.
The contractor's FY22 WIH position stands at $616 million ($591 million for mining services).
MACA shares were up 1.3 per cent at 1:53pm AEDT to trade at 80 cents, while Fenix shares were up 3.5 per cent to trade at 15 cents.
