Mineral Resources has completed the sale of its mothballed Yilgarn Hub iron ore mine for a “confidential and immaterial” amount.
Mineral Resources has completed the sale of its mothballed Yilgarn Hub iron ore mine for a “confidential and immaterial” amount.
In a statement to the ASX this morning, MinRes said it had sold the project to Yilgarn Iron Investments Pty Ltd, along with other tenements and land interests in the region.
“While the commercial terms of the sale are confidential and immaterial, MinRes’ priority was to select the party most likely to sustain these nearly 80-year-old operations for the benefit of the region and community,” MinRes said.
MinRes mined Yilgarn until the end of 2024, after announcing its plan to shut the operation in June of that year and redeploying 800 staff to other roles within the company.
It acquired the project from Cleveland Cliffs for an undisclosed amount in 2018.
MinRes noted that the mine’s new owners would be responsible for all environmental, closure and rehabilitation liabilities at the Yilgarn Hub assets.
It retained the rights to gold and lithium on the tenements within the project.
The project’s buyer, Subiaco-based Yilgarn Iron Investments Pty Ltd, registered as a business in April according to ASIC records.
Its directors are listed as David Anthony Paull and Fergus Campbell.
Mr Paull and Mr Campbell are also directors of Maiden Iron, formerly Australian Aboriginal Mining Corporation, an entity which under that name was chaired by Carey Mining founder Daniel Tucker until his departure in 2020.
Mr Tucker left the company after he was reported to have voted against a deal to sell the Wonmunna iron ore project to MinRes for an immaterial sum that year.
Mr Paull and Mr Campbell are understood to have voted in favour of the plan.
Wonmunna is now part of MinRes' Pilbara Hub iron ore operation.
While he is no longer chair, more than 21 per cent of shares in Maiden Iron are controlled by Mr Tucker, and Mr Campbell directly holds 15 per cent, according to ASIC records.
MinRes managing director Chris Ellison told a shareholder meeting in 2020 that the company’s relationship with Mr Tucker remained “as good as ever” and said his understanding was that Mr Tucker had not voted against the plan.
The Kahlbetzer family’s Twynam Investments holds almost 25 per cent, and more than 12 per cent is owned by Spectral Investments – linked to geologist and mining investor Neil Lithgow, who is also a backer of Yilgarn Iron Investments Pty Ltd.
MinRes managing director Chris Ellison said the company was pleased to hand over control of the project and suggested its mines would run in the years ahead.
“As we transfer our Yilgarn operations to a new owner, we take great pride in everything the MinRes team has achieved in the region over the past 14 years, and that we were able to save hundreds of jobs at Koolyanobbing that would have otherwise been lost with the departure of Cleveland Cliffs,” he said.
“This transaction ensures these mines will continue to support jobs and the economy for years to come and deliver ongoing benefits to the region and Western Australia.”
MinRes shares were up 1.2 per cent this morning to $21.47, giving the company a market capitalisation of $4.17 billion.
