MinRes to complete Koolyanobbing acquisition next week

MinRes and Cliffs have been progressing negotiations with the Western Australian Government to complete the acquisition by July 27.
Cliffs announced in January that it would close the Koolyanobbing mine in the wake of losses incurred by the company’s Asia Pacific business.
MinRes, however, made a move to purchase the company’s iron ore assets in the region last month, saving hundreds of jobs in Western Australia.
In addition to Cliffs’ iron ore tenements, MinRes is buying the United States-based company’s storage and haulage assets at the Port of Esperance, including rail rolling stock and two large sheds for storage.
These assets allow for the transportation of 6–6.25 million tonnes a year (Mt/y) to the port. Rail owner Arc Infrastructure is currently assisting with the economics of continued transport of iron ore from Yilgarn to Esperance.
The sale also includes all fixed plant, equipment and non-process infrastructure.
The value of the acquisition has not been revealed by either company, but Cliffs said the deal should allow its closing costs to be reduced by $US65–75 million ($88–102 million) as part of the transfer to MinRes.