Mineral Resources releases March quarter report
Diversified miner Mineral Resources Limited (ASX: MIN) has provided an update to the market on its activities during the March quarter. Spodumene concentrate production from the Mt Marion project remained in line with Q2 FY19, while iron ore shipments increased 41 per cent over the prior quarter.
Diversified miner Mineral Resources Limited (ASX: MIN) has provided an update to the market on its activities during the March quarter.
· Submissions were lodged with the relevant regulatory authorities in Australia and China in relation to the binding Asset Sale and Share Subscription Agreement between Mineral Resources Limited (ASX: MIN, MRL) and Albemarle Corporation (NYSE: ALB, Albemarle) regarding the sale of a 50% interest in the Wodgina Lithium Project. Completion of the transaction is still expected to occur during the 2019 calendar year (CY19)
· Construction of the Wodgina spodumene concentrate plant and associated non-process infrastructure progressed during the quarter with plant commissioning for train one (250,000 tonne per annum module) commenced during the quarter. The Mount Marion All-in-6% Concentrate Upgrade Project is in the advanced stages of completion with plant commissioning well-progressed
· The sale agreement with Neometals Limited (ASX: NMT, Neometals) for Jiangxi Ganfeng Lithium Co., Ltd (Ganfeng) and MRL to jointly and equally acquire Neometals’ 13.8% share in the Mount Marion Lithium Project completed in March, bringing MRL’s equity interest in the project to 50%
· During the quarter, MRL announced that the Farm-in and Joint Venture Agreement (FJVA) between Brockman Mining Limited (SEHK: 159; ASX: BCK; Brockman) and MRL became unconditional, marking the commencement of the farm-in period in relation to the Marillana Iron Ore Project in the Pilbara (ASX: 22/01/19)
· On 11 January 2019, MRL advised Hexagon Resources Limited (ASX: HXG) that it had earned its 51% interest in the McIntosh Graphite Project under the Joint Venture Agreement (JVA) effective as at 28 September 2018. Under the JVA, MRL must meet certain “end-dates” to retain its joint venture interest (see details below). MRL will provide all mining, processing and logistical services for the project under a life-of-mine Project Services Agreement. During Q3 FY19 metallurgical test work continued to develop knowledge required to optimise the concentrate flow sheets, with outcomes from modelling expected in Q4 FY19
· Iron ore shipments increased 41% over the prior quarter to 3.3 million tonnes (Mt) driven by the successful ramp up of Koolyanobbing
· Koolyanobbing achieved its target annualised run rate of 6Mtpa of iron ore production and plans have been developed to increase production to 8Mtpa by Q1 FY20
· Spodumene concentrate production from the Mt Marion project remained in line with Q2 FY19, shipping 111,287 wet metric tonnes (WMT) with 66% of output being high-grade 6% Li2O product
· MRL Energy continued evaluation of various options in relation to permits EP 368 and EP389 during the quarter