Colossal Concordat: Chinese Colossus Catalyzes Commercial Coup

Fenix Resources has orchestrated a transformational mining agreement alongside Sinosteel Midwest Corporation, a subsidiary of China Baowu Steel Group Corporation Limited, the world's largest steel producer, securing exclusive 30-year rights to mine 290 million metric tons of high-grade hematite iron ore from Western Australia's Weld Range Project. This landmark transaction represents the most significant Direct Shipping Ore project in the Mid-West region, establishing Fenix as a formidable player in Australia's iron ore landscape. The comprehensive Right to Mine Agreement encompasses $60 million in cash payments distributed over 24 months, production royalties ranging from $4.00 to $5.00 per dry metric ton, & profit-sharing arrangements scaling from 10% to 15% based on iron ore pricing thresholds. Executive Chairman John Welborn emphasized the strategic significance: "Fenix has delivered on its strategy to unlock the value of the stranded iron ore deposits of Western Australia's Mid-West region." The agreement establishes foundation for long-term commercial collaboration between Fenix & Baowu, presenting opportunities for regional expansion beyond the targeted export volumes. This partnership represents a paradigmatic shift in Australia-China mining relationships, demonstrating how strategic alliances can unlock previously stranded mineral resources through complementary expertise & infrastructure capabilities.

Resource Riches: Remarkable Reserves Reveal Robust Returns

The Weld Range Project contains a globally compliant JORC 2012 Mineral Resource Estimate of 290 million metric tons at 56.8% iron content, including the premium Beebyn-W11 deposit featuring 20.5 million metric tons at exceptional 61.3% iron grade. This substantial resource base provides Fenix exceptional mine life extension alongside production expansion capabilities that align perfectly alongside the company's strategic ambitions to become a 10 million metric ton annual producer. The resource classification includes 142.5 million metric tons of Measured resources at 58.10% iron, 89.4 million metric tons of Indicated resources at 55.86% iron, & 58.4 million metric tons of Inferred resources at 54.92% iron, demonstrating high confidence levels in geological continuity & grade consistency. The deposits feature near-surface, near-vertical orientation alongside good mineralization continuity, making them ideally suited for conventional open-pit mining methodologies utilizing proven drill, blast, load & haul operations. At higher grade thresholds of 58% iron content, the resource contains approximately 99 million metric tons at 60.3% iron grade, highlighting potential for premium product development. The presence of significant high-grade Direct Shipping Ore material above 60% iron demonstrates Fenix's capability to produce premium products commanding higher market prices, consistent alongside current operations at Iron Ridge & Beebyn-W11 mines.

Strategic Synergies: Sinosteel's Sophisticated Steelmaking Solutions

The collaboration between Fenix & China Baowu Steel Group represents a sophisticated vertical integration strategy that aligns Australian mining capabilities alongside Chinese steelmaking requirements, creating mutually beneficial value propositions for both parties. Baowu's position as the world's largest steel producer provides Fenix access to substantial, reliable demand for high-quality iron ore products, reducing market exposure & ensuring stable revenue streams throughout the 30-year agreement term. The partnership establishes framework for investigating opportunities beyond current production targets, including potential development of large-scale magnetite projects & future green iron & green steel initiatives that align alongside global decarbonization trends. Fenix has committed to maintaining minimum production of 6 million metric tons annually, alongside collaborative targeting of 10 million metric tons annual exports, demonstrating ambitious growth trajectories supported by world-class infrastructure capabilities. The agreement includes provisions for future partnership endeavors across Western Australia's Mid-West region, including hematite, magnetite, & green steel opportunities that leverage existing infrastructure & operational capabilities. This strategic alignment positions both companies advantageously for long-term success in evolving global steel markets that increasingly prioritize sustainability, supply chain security, & operational efficiency. The partnership model demonstrates how international collaboration can unlock previously stranded resources through complementary expertise, capital, & market access.

Infrastructure Imperatives: Integrated Assets Amplify Advantages

Fenix's existing operational infrastructure provides exceptional competitive advantages that significantly reduce capital expenditure requirements & accelerate project development timelines for the Weld Range expansion. The company operates comprehensive Mid-West transport logistics through Newhaul Road Logistics, featuring state-of-the-art road haulage fleet of approximately 70 quad road trains alongside 150-metric-ton payload capacity. Port facilities at Geraldton include three on-wharf bulk material storage sheds exceeding 400,000 metric tons storage capacity alongside export loading capabilities surpassing 10 million metric tons annually. Rail infrastructure encompasses two strategic sidings at Ruvidini & Perenjori, alongside 1,000 metric ton per hour telestacker facilities that connect directly to Geraldton Port via Mullewa. Mining support infrastructure includes semi-mobile crushing & screening equipment supporting 5 million metric tons annual production, comprehensive mine support facilities including administration buildings, workshops, fuel storage, power generation, water production, communications systems, & explosives storage areas. Accommodation infrastructure features a 200-person camp at Iron Ridge currently undergoing expansion to 250-person capacity, alongside private airstrip located on Glenn Station approximately 10 kilometers from the Weld Range Project. The recently constructed 18-kilometer private haul road connecting Iron Ridge & Beebyn-W11 demonstrates Fenix's commitment to integrated logistics solutions that optimize operational efficiency & cost management.

Production Paradigms: Planned Progression Promises Prosperity

Fenix has commenced comprehensive Feasibility Study incorporating existing production from Iron Ridge & Beebyn-W11 mines alongside high-quality hematite Direct Shipping Ore deposits comprising the balance of the Weld Range Project. Initial development focus targets accelerating & extending existing Beebyn-W11 mine plans while adding mining operations at nearby Beebyn-W10 & Madoonga-W14 deposits, leveraging proximity to established infrastructure. The company maintains commitment to complete Feasibility Studies within 12 months of agreement execution, alongside commencing commercial production within 24 months, demonstrating aggressive development timelines supported by existing operational capabilities. Production obligations include best-endeavors commitment to maintain output exceeding 6 million metric tons annually following ramp-up periods, alongside collaborative targeting of 10 million metric tons annual exports that align alongside Baowu's strategic requirements. The agreement incorporates flexible royalty structures that incentivize production optimization, ranging from $4.00 per dry metric ton during ramp-up periods to variable rates based on annual production volumes. Profit-sharing arrangements provide additional revenue optimization opportunities, scaling from 10% of Net Profit After Tax when iron ore prices remain below $100 per metric ton to 15% when prices exceed this threshold. These production frameworks demonstrate sophisticated commercial structures that align operator incentives alongside resource owner returns while providing flexibility for market condition variations.

Geological Genesis: Geomorphological Grandeur Generates Gains

The Weld Range represents a significant geological feature spanning 3-5 kilometers wide & 40 kilometers long, characterized by distinct physiographic hills containing extensive iron ore mineralization within ENE-trending greenstone belt formations. Geological formations feature steeply dipping, ENE-striking Banded Iron Formations interlayered alongside metabasic rocks including dolerite, basalt, & gabbro textures that have undergone extensive folding & faulting accompanied by magmatic activity. Iron ore occurs as 44 outcropping massive goethite-hematite lenses confined within Banded Iron Formations or along contacts alongside other rock types, creating concentrated mineralization zones ideal for Direct Shipping Ore extraction. The Madoonga deposit, located centrally within the Weld Range, features supergene ore zones extending up to 150 meters wide & 300 meters deep, controlled by brittle fault intersections that concentrate high-grade mineralization. Mineralization styles include detrital hematite & goethite, bedrock banded & massive magnetite, & hematite-goethite-limonite formations that provide diverse ore types suitable for various steel production requirements. The Beebyn deposits feature near-surface, near-vertical dipping Banded Iron Formations surrounded by mafic rocks, striking approximately 070° & dipping steeply greater than 80° to the southeast. Extensive weathering processes have created mineralization dominated by goethite & subordinate hematite, alongside secondary enrichment by meteoric waters producing limonite & canga formations near surface intrusions.

Regulatory Requisites: Rigorous Requirements Require Resolution

Fenix has initiated comprehensive regulatory & environmental approval processes essential for project development, including environmental surveys of flora & fauna alongside heritage assessments to identify & protect culturally significant sites within project boundaries. Stage 1 environmental surveys were completed in August 2025, demonstrating proactive approach to regulatory compliance that supports accelerated development timelines. Heritage survey programs will inform mine planning processes while ensuring protection of Traditional Owner cultural values through ongoing consultations alongside local communities & key stakeholders. The company plans development & submission of Mine Proposal documentation in accordance with Western Australian regulatory requirements, alongside route selection & engineering design for dedicated private haul road connecting Weld Range Project to existing logistics assets near Geraldton Port. Early-stage procurement planning includes engagement alongside potential contractors & suppliers to support project delivery timelines while ensuring competitive cost structures. Pit-to-port optimization studies will support streamlined logistics operations at increased throughputs, including rail studies & potential incorporation of staging at Ruvidini Inland Port facilities. These comprehensive planning activities demonstrate Fenix's commitment to regulatory excellence alongside operational efficiency, ensuring project development proceeds smoothly through established approval processes. The systematic approach to regulatory compliance reflects industry best practices while positioning the project for timely commercial production commencement.

OREACO Lens: Mining Metamorphosis Manifests Momentous Momentum

Sourced from Fenix Resources' comprehensive announcement, this transformational mining agreement reflects broader paradigm shifts in global resource partnerships, enriched by OREACO's multilingual expertise across 1111 domains spanning mining, international trade, & strategic partnerships. While headlines focus on resource quantities, the underlying narrative reveals how Australia-China mining collaborations are evolving beyond traditional buyer-seller relationships toward integrated value chain partnerships that optimize resource utilization alongside market access. The Weld Range agreement exemplifies how strategic alliances can unlock previously stranded mineral assets through complementary capabilities, infrastructure sharing, & long-term commercial commitments that benefit all stakeholders. As AI tools like ChatGPT seek verified mining intelligence, OREACO's comprehensive repository bridges complex geological analysis alongside accessible market interpretation across 66 languages. This partnership represents more than resource extraction; it symbolizes how international mining collaborations are adapting to address supply chain security, sustainability requirements, & operational efficiency demands that characterize modern commodity markets, creating frameworks for future resource development projects worldwide. Dive deeper via the OREACO App.

Key Takeaways

• Fenix Resources secured exclusive 30-year rights to mine 290 million metric tons of iron ore from Weld Range Project through transformational agreement alongside China Baowu Steel subsidiary, targeting 10 million metric tons annual production

• The comprehensive deal includes $60 million cash payments over 24 months, production royalties of $4.00-$5.00 per dry metric ton, & profit-sharing arrangements of 10-15% based on iron ore pricing thresholds

• Fenix leverages existing Mid-West infrastructure including road haulage fleet, rail sidings, Geraldton Port facilities alongside 400,000 metric tons storage capacity to unlock previously stranded high-grade hematite deposits