On September 1, Fenix Resources announced a 30-year agreement with Sinosteel Midwest Corporation, part of China Baowu Steel Group, granting exclusive mining rights to the Weld Range hematite project in Western Australia.

The deal covers an estimated 290 million tons of ore, with Fenix committed to a minimum of 6 Mtpa production and a target of 10 Mtpa in cooperation with Baowu. Fenix will pay A$60 million over two years and share royalties and profits during production. 

The company is advancing the Beebyn-W11 deposit, with 20 Mt of reserves at 61.3% Fe, where initial shipments have begun. 

Supported by infrastructure including an 18 km haul road, Fenix expects its annual capacity to rise to 4 Mtpa by 2025. 

Executive Chairman John Welborn said the deal ensures long-term resource security and strengthens Fenix’s strategic partnership with Baowu, the world’s largest steelmaker.