en.Wedoany.com Reported - Australian mining company MGX Resources announced on June 11 that it has entered into a conditional binding agreement with infrastructure and logistics company Crestlink Koolan Pty Ltd to sell its Koolan Island iron ore mine operations in Western Australia, following the completion of existing infrastructure shipments. The transaction includes upfront and deferred payments totaling A$20.2 million (approximately US$14.1 million), plus up to A$5 million (approximately US$3.5 million) in future revenue sharing; upon completion, Crestlink will also assume the remaining mine rehabilitation obligations, estimated at approximately A$30 million (approximately US$21 million). MGX expects to complete shipments of existing low-grade iron ore from Koolan Island by July 2026, then gradually scale down site operations and finalize the transaction by the end of 2026, with certain regulatory conditions extendable to March 31, 2027.
The transaction is proposed to be executed through the sale of 100% equity in MGX's wholly-owned subsidiary Aztec Resources Limited, which holds the Koolan Island mine operations and related mining rights through its subordinate entities. The deal is subject to approvals from regulatory bodies including the Australian Foreign Investment Review Board, and requires MGX to complete specified rehabilitation work in accordance with the Koolan Island mine closure plan.
Located in the Buccaneer Archipelago, approximately 140 kilometers north of Derby, Western Australia, Koolan Island has been a core iron ore asset held by MGX for an extended period. According to the company's official website, the mine was operated by BHP from 1963 to 1993, producing nearly 70 million tons of high-grade iron ore; it was closed after production ceased in 1993 and subsequently flooded by seawater. MGX took over in 2007 and resumed production, exporting over 40 million tons of iron ore from the mine by July 2025. This sale indicates that MGX's iron ore operations at Koolan Island are entering an exit and wind-down phase, with subsequent supply impacts primarily reflected in the conclusion of low-grade inventory shipments and the pace of mine closure. Meanwhile, the company's future business focus will gradually shift from iron ore to gold development.
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