Macarthur engages mining heavyweight to drive WA magnetite ambitions

Macarthur Minerals has pulled in a big gun to advance its Moonshine magnetite iron project near Lake Giles in Western Australia, engaging the services of seasoned mining executive Nigel Jones.

Macarthur’s management has previously expressed interest in bringing in a new major partner to help develop its massive magnetite deposit. The company has now tapped Jones as the man for the job.

The former Rio Tinto heavyweight executive will serve as a consultant through his United Kingdom-based consulting firm, Redbeck Partners. He brings more than 30 years of experience in the global mining and resource financing sectors to the table.

Macarthur Minerals secures mining executive Nigel Jones as consultant to develop its Moonshine magnetite iron ore project in Western Australia.

Jones is well known in Australia’s iron ore circles for his leadership role at Rio Tinto’s Simandou project - one of the world’s largest developing iron ore deposits.

‘His extensive experience in the mining and financial sectors, will be invaluable as we work to advance our Moonshine magnetite project.’

Macarthur Minerals chairman Cameron McCall

Jones is no stranger to Macarthur, having played a crucial role in introducing the company to its original offtake partner Glencore International in 2019.

His duties at Macarthur now include securing joint ventures, mergers, acquisitions and other business arrangements to fast-track the company’s operations.

Macarthur Minerals chairman Cameron McCall said: “We are honoured to have someone of Nigel’s calibre on the team. His extensive experience in the mining and financial sectors, along with his proven leadership in major resource projects, will be invaluable as we work to advance our Moonshine magnetite project.”

Redbeck Partners will be paid a monthly consultancy fee of $15,000 for Jones’ services, payable in Macarthur shares.

Macarthur’s Lake Giles Moonshine project is notable for its massive 1.3-billion-tonne resource and high-grade magnetite concentrate potential. The company believes its project can produce a premium “green ore” concentrate of around a staggering 70 per cent iron for a mine life of some 25 years.

The company believes its Moonshine project compares favourably with several other magnetite projects around the world. It cites comparisons with Champion Iron’s magnetite project in Canada, based on a completed 2022 feasibility study on Moonshine relative to Champion’s 2024 pre-feasibility.

Macarthur also recently successfully executed a royalty deal over its Ularring hematite project, immediately next door at Lake Giles, with West Perth-based iron ore exporter Gold Valley Yilgarn.

The deal included $750,000 of payments already received and a royalty for every tonne of ore extracted from the project. The royalty could potentially generate $89 million for the company, which can be directed to developing Moonshine.

The royalty deal will net Macarthur $10m for the first 2 million tonnes of ore Gold Valley ships to the Esperance port from the 80.5mt project and a $1 royalty for all subsequent tonnes mined for the life of the mine.

With Jones at the helm of its deal-making efforts and key infrastructure already in place, Macarthur is setting itself up to court a potentially cashed-up partner to take it forward and, hopefully, join the ranks of some of WA’s magnetite giants.

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