Mineral Resources Limited (ASX:MIN) shares lower on Koolyanobbing acquisition

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The share price of Mineral Resources Limited (ASX: MIN) has dropped 3% lower to $16 on Thursday morning.

Mineral Resources on Wednesday announced it has completed the acquisition of the Koolyanobbing iron ore operations from Cleveland-Cliffs Inc., after yesterday finalising access arrangements to the Port of Esperance with the State Government.

Mineral Resources have also acquired ownership of Cliffs’ fixed infrastructure assets at
the Port of Esperance, which include the railcar dumper and two large storage sheds.

The Koolyanobbing Operation, located about 50km north of Southern Cross in the Yilgarn
region of Western Australia includes fixed iron ore mine infrastructure assets and mining
tenements.

On Wednesday the company recommenced its Yilgarn iron ore operations using assets at both its Carina mine as well as at its newly acquired Koolyanobbing Operation.

The company says it intends to start moving Yilgarn iron ore by rail to the Port of Esperance in October 2018 and commence shipping activities in November 2018.

Managing Director Chris Ellison said:“ We are extremely pleased to have resumed iron ore operations in the Yilgarn and look forward to shortly beginning to export our iron ore from Esperance and, in the process of doing so, preserving hundreds of jobs and creating economic benefits for regional Western Australia.”

Since the beginning of 2018, the Mineral Resources Limited share price has fallen 24% compared to the S&P/ASX 200 Index which has gained 4.79% in the period.

Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au