MinRes grows iron ore production

Chris Ellison-led Mineral Resources has reported a 22 per cent quarterly climb in iron ore production while boosting its mining services division.

MinRes produced 5.1 million tonnes of ore in the six months to December 31, up 22 per cent on the September quarter and 53 per cent on the same time last year.

That included 3mt produced from the Koolyanobbing mine in Western Australia’s Wheatbelt and 2.1mt produced from Iron Valley in the Pilbara. Production at a third mine, Wonmunna, is expected before March 31.

MinRes’ average iron ore revenue was $US138/t, up 42 per cent on the prior quarter. The result was driven by strong iron ore prices, which reached a record high of $US181/t on January 19.

Meanwhile, spodumene (lithium) production from MinRes’ Mt Marion hard rock asset in the Wheatbelt grew to 129,000t, down 3 per cent on the September quarter but rising 30 per cent on Q2 FY20.

The result was in line with Mt Marion’s optimised mine plan, MinRes said. However, exports from Mt Marion were lower this quarter due to one shipment being delayed.

The company's Wodgina lithium operations (a joint venture with US-owned Albemarle Corporation) remains under care and maintenance. MinRes holds a 40 per cent stake in the JV and Albemarle the remaining 60 per cent.

MinRes also holds a 40 per cent interest in two 25,000tpa lithium hydroxide plants in Kemerton, WA, currently being built by Albemarle.

Once developed, the Kemerton operations will require an on-site workforce of about 1,250, MinRes said. Construction is scheduled to complete before June 30.

Today, MinRes also said its mining services volumes had grown by 22 per cent since Q2 FY20. The company expects FY21 volumes to achieve annual growth of between 20 and 25 per cent.

Shares in the company closed down 5.5 per cent to trade at $34.35.