Mineral Resources (ASX:MIN) has announced a pivotal $1.13bn deal with Hancock Prospecting, selling 100% of its exploration permits in the Perth Basin and forming joint ventures on remaining assets across the Perth and Carnarvon basins. This transaction, including an $804m upfront payment and up to $327m in resource-dependent bonuses, reflects MinRes’s strategy of leveraging high-value assets.
Darren Hardy, MinRes’s Chief Executive for Energy, emphasised the value this partnership brings, stating, “This transaction maximises the value of our exploration success for shareholders and again showcases our ability to unlock significant capital from MinRes’s portfolio.”
Hancock, known for its resource development expertise, will also share future exploration costs and assume post-development expenses if production advances, accelerating MinRes’s exploration schedule and significantly reducing its capital load.
Simultaneously, MinRes’s quarterly report highlights strong operational performance, particularly at the Onslow Iron project, which recorded its first full quarter of production with 1.9 million wet metric tonnes (wmt) produced and 1.4 million wmt shipped. This project, supported by $1.1 billion from Morgan Stanley Infrastructure Partners through a partial asset sale, is on track to achieve a 35 million tonnes per year run rate by mid-2025, reinforcing Onslow’s role as a core growth driver.
MinRes has also been focused on cost optimisation, implementing $300m in reductions through roster changes and equipment rationalisation, while adjusting lithium operations to produce higher-quality products to meet current market demand. However, internal challenges have surfaced, with the board launching an investigation into allegations involving Managing Director Chris Ellison. The board expects to release findings by 4 November, and a representative stated, “We are working diligently to maintain transparency with our stakeholders,” highlighting the company’s commitment to governance amid turbulent market conditions.