Fenix to form JV with Minehaul

Fenix Resources has formed a strategic alliance with trucking and logistics company Mineheaul, to be led by Craig Mitchell, which the mining company said is a significant step towards the development of its Iron Ridge project.

Fenix and Minehaul will form a new 50/50 joint venture company called Premium Minehaul that will provide all trucking services to the project, located 490 kilometres from Geraldton port.

In a statement, Fenix said the large distance from the Geraldton port means a “significant portion” of the project’s total operating costs will be related to road transport and logistics.

Under the agreement, Minehaul will make a $250,000 investment in Fenix, as part of a broader $1.25 million share placement.

Former Mitchell Corp owner and founder Craig Mitchell has been appointed chairman and chief executive of the JV.

Mitchell Crop was acquired by Toll Group for approximately $110 million in 2011.

Fenix managing director Robert Brierley said the JV represented a significant step for the company.

“Significant benefits include reduction and transparency of trucking costs, greater control over the logistics chain, reduction in the initial capital outlay, and mostly importantly, by introducing Craig Mitchell into the operations the company stands to benefit significantly from his extensive experience in the industry,” he said.