Mineral Resources (ASX: MIN) has completed the sale of its Yilgarn Hub iron ore operations to Yilgarn Iron Investments, marking the end of a 14-year involvement in one of Western Australia's more historic mining regions.
The transaction represents a strategic pivot for the diversified miner, as it consolidates around its low-cost, long-life Pilbara operations.
Legacy
The Yilgarn Hub encompasses a collection of iron ore mines with an impressive pedigree stretching back nearly 80 years.
MinRes's journey in the region began at Carina in 2011, expanding to Jackson Ranges in 2015 before the pivotal 2018 acquisition of the crown jewel: Koolyanobbing.
Its purchase from Cleveland-Cliffs was significant, as MinRes stepped in to preserve hundreds of jobs that would have been lost when the U.S. steel giant exited Australia.
Located 50km north of Southern Cross, Koolyanobbing became the centrepiece of MinRes' Yilgarn operations, complemented by the Parker Range, Windarling and Carina deposits.
Divestment rationale
The sale follows MinRes's decision in June 2024 to wind down operations after a comprehensive viability assessment revealed the operations were “not financially viable beyond the end of 2024”.
Several factors contributed to this decision: the limited remaining mine life across five operating mines, the significant capital costs required to develop new resources, and the lengthy lead times needed to ensure supply continuity.
MinRes MD Chris Ellison emphasised that the decision aligned with the company's strategy to transition its iron ore business to “low-cost, long-life operations".
The timing coincides with MinRes' massive investment in the Onslow Iron project, which achieved first ore shipment in May 2024 and is set to reach nameplate capacity of 35Mtpa in Q1 FY26.
During its tenure, MinRes exceeded its original commitments to the State Government, which called for operating Koolyanobbing for up to five years or shipping 30Mt.
Instead, the company has operated for 6.5 years and exported approximately 45 million tonnes through the Port of Esperance, investing $850 million in assets and spending $4.2 billion on operations since 2018.
The transaction's commercial terms remain confidential and were described as "immaterial" to MinRes's balance sheet.
The kicker for the outgoing owner-operator is that MinRes has retained all gold and lithium rights on tenements within the Yilgarn Hub, preserving future optionality in the region.
Transition
800 employees have been redeployed to other company operations during the wind-down period.
YII has assumed all environmental, closure, and rehabilitation liabilities, whilst taking ownership of all tenements, approvals, licences, and fixed assets across the hub.
Ellison noted that MinRes's priority throughout the sale process was “to select the party most likely to sustain these nearly 80-year-old operations for the benefit of the region and community".
The broader transformation occurring within MinRes is a repositioning of focus around higher-margin, longer-life assets while maintaining its diversified mining services platform.
The Yilgarn sell-off allows the company to focus capital on Onslow Iron and other growth opportunities across its portfolio.
Shares in Mineral Resources closed at $21.56 per share yesterday.
