Mineral Resources Limited (ASX: MIN) has delivered a transformative milestone with the completion of critical infrastructure upgrades at its flagship Onslow Iron project. The $7.3 billion mining giant is now positioned to achieve its ambitious 35 million tonnes per annum (Mtpa) production target by early 2026.
The completion marks the culmination of a comprehensive upgrade programme that has revolutionised one of Western Australia’s most innovative iron ore operations.
Infrastructure Transformation Powers Production Growth
MinRes has successfully commissioned its fifth transhipper, MinRes Peak, bringing total transhipping capacity to 35.9 Mtpa. This achievement represents the final piece in a complex logistics puzzle that positions Onslow Iron as Australia’s largest transhipping operation.
The upgraded haul road, west of the North-West Coastal Highway
The company’s ambitious infrastructure programme has delivered remarkable results:
- Haul Road Excellence: The 150-kilometre sealed haul road connecting Ken’s Bore mine to Port of Ashburton achieved practical completion, with asphalting works finalised by September 2025
- Transhipper Fleet: Five dedicated vessels now support the full production capacity, with loading rates of 8,000 tonnes per hour
- Processing Innovation: Three NextGen modular crushing plants deliver combined capacity of 40.9 Mtpa, featuring carbon fibre screens developed in-house
The project has maintained cash flow positivity across all components since November 2024, signalling its successful transition from development to revenue-generating asset.
Record Shipments Signal Operational Success
Onslow Iron shipped 14 million tonnes during FY25, demonstrating the project’s accelerating momentum. Monthly shipments have increased from 1.3 million tonnes in April to an expected 1.9 million tonnes in May 2025, representing a run rate of 23 Mtpa.
MinRes anticipates further shipping increases in June, targeting 2.3-2.6 million tonnes monthly – equivalent to a run rate of 28-31 Mtpa. This progression validates the company’s systematic approach to scaling operations while maintaining safety and efficiency standards.
Managing Director Chris Ellison described Onslow Iron as “the company’s biggest achievement since listing on the ASX in 2006.” The project represents a multi-decade asset with an expected mine life exceeding 30 years.
Technological Innovation Drives Competitive Advantage
The Onslow Iron project showcases cutting-edge mining technology that sets new industry benchmarks. The operation features several world-first innovations:
- Autonomous Haulage Systems: MinRes leads the autonomous haulage mining industry with road trains operating on the dedicated haul road. The 425-tonne vehicles navigate the 150-kilometre route with precision, reducing human involvement while enhancing consistency.
- Transhipping Excellence: Purpose-built 20,000-tonne shallow transhippers ferry ore to ocean-going vessels anchored 40 kilometres offshore, eliminating the need for deep-water port infrastructure.
- Integrated Operations: The project’s pit-to-ship supply chain demonstrates vertical integration excellence, from NextGen crushing plants to sophisticated marine operations.
Resource Base Strengthens Long-Term Outlook
MinRes recently updated its Mineral Resources and Ore Reserves statements, revealing substantial increases that underscore Onslow Iron’s world-class credentials. The updated figures show:
These upgrades reflect closer-spaced drilling, comprehensive geological remodelling, and reclassification of additional deposits. The resource growth confirms the project’s potential to operate for decades while maintaining high-grade iron ore production.
Strategic Partnerships Enhance Development
The Onslow Iron project benefits from strong partnerships with Traditional Owners and strategic investors. MinRes signed a 50-year agreement with the Buurabalyji Thalanyji Aboriginal Corporation, ensuring long-term benefits for Traditional Owners throughout the project’s life.
The Foreign Investment Review Board approved a 49% sale of the haul road asset to Morgan Stanley Infrastructure Partners for $1.3 billion in September 2024, demonstrating international confidence in the project’s infrastructure quality.
Market Position and Financial Performance
MinRes shares have demonstrated resilience amid volatile commodity markets. The company’s diversified portfolio, anchored by Onslow Iron’s cash flow generation, provides stability during challenging market conditions.
The stock currently trades around $37-41 per share, reflecting investor confidence in the company’s operational excellence and growth trajectory. With a market capitalisation approaching $7.3 billion, MinRes has established itself as a major force in Australian mining.
Mineral Resources Share Price
Looking Ahead: Full Capacity Target
MinRes remains on track to achieve Onslow Iron’s nameplate capacity of 35 Mtpa during the first quarter of FY26. The company’s methodical approach to capacity expansion, combined with proven operational capabilities, positions it to deliver on this ambitious target.
The completion of infrastructure upgrades represents more than operational success – it establishes Onslow Iron as a blueprint for future mining developments in Australia’s resource sector.
FAQs
Q: When will Onslow Iron reach full production capacity?
A: MinRes expects to achieve the nameplate capacity of 35 Mtpa during Q1 FY26.
Q: How many transhippers support the operation?
A: Five dedicated transhippers with a combined capacity of 35.9 Mtpa, with potential for additional vessels in 2026.
Q: What makes Onslow Iron innovative?
A: The project features autonomous haulage, NextGen crushing technology, and Australia’s largest transhipping operation.
