Fenix will be responsible for haulage, storage, port services, ship loading, marketing and sales using its expanded port capacity and logistics capabilities.

Under the deal 10M will supply 500,000t of 60%+ direct shipping iron ore from its Woolbung Peak deposit, which forms part of the Twin Peaks DSIO project for a $40 per wet metric tonne mine gate payment. There is also a profit-sharing agreement payable to 10M that equates to 70% of notional profit calculated based on the revenue obtained for the product minus any discounts attributable to product quality such as iron grades, moisture adjustments or product impurities, and also subtracting costs from paying state and third-party royalties, as well as Fenix's haulage and port costs, and the mine gate payment.

10M managing director Phil Robinson welcomed Fenix's support.

He said Fenix, with its infrastructure and logistical capabilities, represented an ideal partner.

Fenix chairman John Welborn said the deal would unlock the value of another high-grade iron ore deposit in the Mid West.

"The consolidation of the Fenix Newhaul business and the acquisition of our expanded Mid West rail and port assets, provides Fenix an exciting platform for growth for our own deposits and from the many projects in the region seeking to advance to production," Welborn said.

"Fenix's transformation into a fully integrated mining, haulage, rail and logistics business is progressing, with our ambition to build a major regional iron ore producer and a profitable third-party logistics provider," he said.

Welborn said the 10M ore purchase agreement would provide an immediate boost to Fenix's exports tonnages as it worked to bring the Shine iron ore mine and the Beebyn-W11 deposit into production alongside its Iron Ridge iron ore mine.