Morgan Stanley acquires stake in Australia’s Onslow Iron Road Trust

Morgan Stanley acquires stake in Australia’s Onslow Iron Road Trust

Banking & Financial Services
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James P. Gorman, Executive Chairman of Morgan Stanley | Columbia Business School

Morgan Stanley Investment Management (MSIM), through investment funds managed by Morgan Stanley Infrastructure Partners (MSIP), has announced the acquisition of a 49% stake in Onslow Iron Road Trust (Road Trust). The partnership includes Mineral Resources Limited, which retains a 51% ownership.

Mineral Resources, listed on the Australian Stock Exchange, manages and holds the majority stake in the Onslow Iron ore project located in Western Australia's northwest Pilbara region. Onslow Iron has begun ore production and aims to reach its full capacity of 35 million tonnes per annum by June 2025.

As part of the project's development, Mineral Resources constructed a private haul road approximately 150 kilometers long from the Onslow mine to Ashburton Port. This road is vital for transporting iron ore deposits from West Pilbara. Road Trust owns this key infrastructure asset.

“We are pleased to partner with Mineral Resources as part of the Onslow Iron project and value its long-term track record of project execution,” said Tim Cooper, Managing Director for MSIP. “We are proud to be co-stewards of an asset we believe will deliver an attractive, inflation-protected cash yield, backed by significant barriers to entry and attractive underlying economics.”

Onslow Iron Road Trust owns and operates the private haul road critical for transporting iron ore from Onslow Iron to Ashburton Port. It benefits from Mineral Resources' extensive experience in mining supply chain solutions over more than three decades.

Morgan Stanley Infrastructure Partners is a global private infrastructure investment platform managing approximately $17 billion in assets since its founding in 2006. The platform's investments span transportation, digital infrastructure, energy transition, and utilities sectors.

Morgan Stanley Investment Management oversees more than $1.5 trillion in assets globally as of March 31, 2024. The firm offers comprehensive investment management services across various client bases including governments, institutions, corporations, and individuals.

Morgan Stanley provides financial services worldwide with offices in 42 countries. Its offerings include investment banking, securities trading, wealth management, and investment management services.

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