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“If you look back over the last 40 to 50 years, it’s the basic commodities that have created the top three to four mining companies on the planet,” he said.
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“This is a cash generator.
Iron ore exports also became the fortune of two Australian millionaires, Gina Reinhart of Hancock Prospecting and Andrew Forrest of Fortescue.
After discovering the deposit, the key to the Pilbara’s iron ore wealth is rail and port capacity, which big BHP and Rio Tinto are not meant to share. After years of fighting in court over access to the existing tracks, Forrest decided to build his own railway line, followed by his 70% owned Roy His Hill, owned by Reinhart, on the Pilbara. Laid his fourth private wire network.
In February, the Washington state government released the last available capacity in Port Hedland.
“We got the majority of it, and Hancock got a minority stake. We used that as currency,” Ellison said. MinRes now has access to the Roy Hill railroad in exchange for an equal share of berthing capacity. This replaces trucking of expensive ore to the coast.
A five-hour drive east, MinRes will have to build its own infrastructure for its new Onslow Iron project, but is doing so as cheaply as possible. An unmanned road train travels 150 km of private transport roads to Onslow, loading small ‘transshippers’ that carry ore to waiting bulk he carriers. This eliminates the need to dredge expensive transportation channels.
A possible glitch in the plans is that a haul road runs through Minderoo Station, Forrest’s childhood home, ironically.
“I don’t see any issues there,” Ellison said, perhaps hopefully.
MinRes’ next venture, gas production, was fueled by Ellison’s desire to secure energy for its mines and lithium refineries.
With early success in the Lockyer Deep-1 well drilled a year ago in the Perth Basin, about 230 km north of the capital, MinRes may have more gas than it needs.
“Have you ever been bored with anything, do girls have enough handbags?”
Mineral Resources CEO Chris Ellison doesn’t rule out more Perth Basin gas through M&A.
Ellison said he is not considering supplying LNG plants that require exemptions from the McGowan government’s ban on onshore gas exports.
In 2020, the WA premiere was controversially announced at nearby Waitsia Field, where Kerry Stokes, chairman of the state’s dominant media company SevenWest, has a license to export the first five years of production through Beach Energy. gave
“I don’t want to stir the pot,” Ellison said.
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Instead, Ellison looks to energy-intensive processes that process low-grade magnetite iron ore and use gas to produce ammonia and urea.
“It’s a lot cleaner than burning coal, and a lot cleaner than burning diesel,” he said.
Ellison’s endorsement of Gus places him between two other much wealthier WA steel billionaires worth more than $30 billion compared to his $1.8 billion stake in MinRes To do.
He was speaking on the same day that climate skeptic and future miner Reinhart attended Donald Trump’s candidacy for US president.
But his plans to produce gas for decades are heresy for Forrest, whose Fortescue is aiming for net-zero emissions in eight years, and last week’s COP 27 climate conference, where companies said fossil fuels He said there was no excuse not to act beyond
The highly promising Perth Basin was the site of a flurry of merger and acquisition activity in November. Strike Energy’s bid for his joint venture partner Warrego has been overwhelmed by an all-cash offer from Beach Energy, with many expecting further action.
Despite Lockyer Deep’s success, Ellison said:
“I’d be lying if I said I wasn’t interested.”
“Are you bored with anything? Girls, do you have enough handbags?
Ellison’s analogy may have been inspired by his most high-profile hiring of former Foreign Secretary Julie Bishop as a strategic adviser in 2022.
Her first outing was more tactical than strategic. She starred in her comedy video of Camping MinRes, which introduces MinRes employees to her gorgeous new headquarters in Osborne Park in downtown Perth, best known for its car yards and furniture stores.
With a gym, mental health support, a medical suite, and a restaurant offering $8 takeaway dinners, MinRes is doing well in the highly competitive – for employers – Washington state labor market.
For many of MinRes’ approximately 5,000 employees, better accommodation is a carrot.
“The standard dongas on site are like prisons, with little square windows and little holes,” he said.
Ellison’s alternative, a “resort-style” room three times the size, with a queen-size bed four times the cost, was ordered in the first batch of 1,000.
With four of Ellison’s six direct reports starting with MinRes in the last four years, change is already happening at the top of the company.
A focus on people has resulted in a book-like annual report adorned with employee photographs and non-work hobbies, including Ellison the fisherman, Gamer the electrician, and Bonsai artist the IT.
After the annual shareholder meeting, Macquarie called MinRes a preferred company in the broader resources sector. Lithium prices are currently trending upwards, with long-term organic growth options.
But Ellison was not in sales mode as he wrapped up his annual meeting speech.
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