Australian iron ore producer Fenix Resources has announced a cargo partnership with bulk carrier operator Mira Bulk. The move is aimed at reducing the cost of transporting its iron ore products while supporting the company's production growth plans.
The agreement is accompanied by US$44 million in new long-term financing facilities from ResInvest and the expansion of sales and marketing of Fenix's iron ore.
Freight partnership aims to reduce shipping costs
Fenix has formed a freight Fenix-Mira Bulk's partnership with Mira Bulk, a bulk carrier operator jointly owned by ResInvest and Vaiana Shipping limited. Under the agreement, Fenix will pay commissions at market prices and receive a share of the partnership's profits based on the volume of iron ore shipped.
The partnership is aimed at reducing freight costs by increasing vessel size and providing preferential access to shipping capacity, the company said.
ResInvest is providing $44 million in financing
The new partnership allowed Fenix to receive $44. million under long-term financing mechanisms from ResInvest to replace existing short-term prepayment mechanisms. The company said the financing will strengthen its balance sheet and support its three-year production plan.
The loans include:
- a $9.28 million prepayment loan,
- a $35 million term loan.
The new agreements are according to Fenix extend financing repayment terms to two years, reduce refinancing risk and provide a stronger capital base to support production growth through FY28.
Fenix's production plan calls for iron ore output of 4.2-4.8 million tonnes in FY26, rising to six million tonnes by FY2026. FY28
