BBI to buy MinRes iron ore operation

The owner of the $6 billion Balla Balla iron ore project in the Pilbara has entered into an option agreement to acquire the nearby Weelumurra asset from Mineral Resources for an undisclosed sum.

Todd Corporation-controlled BBI Group entered into an agreement with MinRes subsidiary Polaris Metals for the option to acquire the operation, which it says potentially contains about 200 million tonnes of iron mineralisation and further exploration upside.

Weelumurra is also 15 kilometres from BBI’s proposed Central Pilbara rail head and stock yards.

“Securing the Weelumurra iron ore asset is an important step in BBI’s efforts to progress the (Balla Balla) project to a final investment decision,” BBI chief executive Nicholas Curtis said.

“We look forward to working with Mineral Resources and other Weelumurra stakeholders to continue its development so that we are in a position to bring it into production via the Balla Balla infrastructure project.”

BBI also announced a potential 400 million tonne iron mineralisation resource at Balla Balla, and was progressing applications and planning for an exploration campaign.

“BBI has also continued to progress confidential discussions with the owners of other potential customer mines seeking export capacity via the BBI project infrastructure,” the company said.