Mineral Resources Limited (ASX:MIN) has released its quarterly activities report for the period ending 30 June 2020.
HIGHLIGHTS:
The coronavirus (COVID-19) crisis did not materially impact Mineral Resources during Q4 FY20 and FY20 overall. From April to 30 June, MRL conducted more than 25,000 COVID-19 PCR screening tests for resource industry workers through MRL’s seven screening facilities in metropolitan Perth and regional areas across the WA. All results were negative. Our ongoing focus has been to protect our employees and their families from the virus while keeping everyone employed to ensure that everyone has a pay cheque to take home. As a result of these actions, we have maintained and increased production.
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Safety performance continued to improve, with a Total Reportable Injury Frequency Rate (TRIFR) for the past 12 months of 3.29. This represented an improvement of 18% compared to FY19.
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A record breaking quarter for iron ore business with total iron ore production of 4.2 million (m) wet metric tonnes (wmt), 22% higher than Q3 FY20. Iron ore shipments for the quarter were 4.4m wmt, up 53% from Q3 FY20. Total FY20 iron ore shipments of 14.1m wmt were 33% higher than FY19.
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Koolyanobbing ramped up to ship 2.6m wmt iron ore during Q4 FY20. Shipments in the month of June of 1.1m wmt represented an annualised run rate of 12.7 mtpa. Total FY20 shipments of 7.4m wmt were in line with guidance.
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Iron Valley shipped 1.8m wmt iron ore for the quarter, an increase of 35% from the previous quarter. Total FY20 shipments of 6.7m wmt were in line with guidance.
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Average iron ore revenue received of US$84 per dry metric tonne (dmt) during the quarter, 12% higher than the previous quarter.
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Mt Marion Lithium Project achieved record production of 146,000 wmt and record shipments of 114,000 wmt of spodumene concentrate during the quarter.
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During the quarter, MRL completed a transaction comprising a series of arrangements with BCI Minerals Limited (ASX: BCI, BCI) that will enhance the Company’s iron ore footprint in the Pilbara region, including the purchase of the Buckland Project from BCI for cash consideration of up to $20 million and the optimisation of the existing Iron Valley Agreement whereby BCI will participate in the capital investment required to extend the mine life at Iron Valley through a partial rebate of MRL’s payments to BCI.
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MRL also completed an Asset Sale Agreement with Resources Development Group Limited (ASX: RDG) to transfer a 100% interest in the Company’s non-core Ant Hill and Sunday Hill manganese assets to RDG in return for MRL receiving scrip equivalent to a 75% shareholding in RDG. The transaction was completed during the quarter.
COVID-19 Update on Operations
The COVID-19 crisis continues to cause significant damage to communities across Australia and the world. Since the outbreak in January 2020, MRL has continuously monitored developments around the world along with guidelines introduced by the Federal and State Governments and health authorities to minimise the risks that COVID-19 presents to us.
In April 2020, Mineral Resources began swab-screening all workers and visitors to operational sites. Our aim is to ensure that anyone entering our sites is free of the virus.
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PCR screening is conducted at four drive-through facilities in Perth, Kalgoorlie, Mandurah and Port Hedland as well as screening centres in Busselton, Esperance and Geraldton. All sites were chosen to maximise convenience for workers and visitors to site, enabling them to be screened without compromising the integrity of the screening process. Qualified nursing staff with full medical PPE clothing and equipment undertake all collections. Samples collected are processed in National Association of Testing Authorities (NATA) accredited laboratories for analysis.
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MRL’s screening process uses PCR COVID-19 analysers and Therapeutic Goods Administration (TGA) approved testing kits, specifically targeted at testing for the SARS-CoV-2 virus. The machines and the testing kits, which were sourced and procured by MRL, are of the highest global standard and the testing approach is recognised by the Royal College of Pathologists of Australasia (RCPA). The screening and results reporting processes fully comply with all government regulations, guidelines and standards.
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All workers and site visitors are required to attend a swab-screening facility in the days leading up to the start of their shift/swing and pass the COVID-19 test before they can travel to site.
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The COVID-19 screening process is part of MRL’s standard ‘fit for work’ regime and will remain in place until the Commonwealth and State Governments declare that COVID-19 is no longer a risk to our community. The machines used by MRL in the COVID-19 screening process are capable of performing a high volume of tests. The screening process has been offered to other West Australian resource companies at cost to reduce the risk of closures in the State’s resources industry.
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Since the first screening tests in April and up to the end of Q4 FY20, more than 25,000 workers have been swab-screened at MRL’s screening facilities. This initiative complements other actions taken on our sites, further details of which are available at www.mineralresources.com.au/home-page/covid19-response/.
