Mineral Resources Limited (ASX: MIN) (“MRL” or the “Company”) is pleased to present its Quarterly Exploration and Mining Activities Report for the period to 30 September 2021.
Q1 KEY POINTS
- Safety performance for the first quarter of FY22 remained steady, with the Total Reportable Injury Frequency Rate (TRIFR) remaining at 2.31 and the Lost Time Injury Frequency Rate (LTIFR) improving slightly to 0.11.
- Unplanned border closures and lockdowns implemented following COVID-19 outbreaks around the country continued to impact MRL operations, primarily through the forced curtailment of staff movements and a continued shortage of road haulage drivers.
- Mining Services production volumes increased 7% during the quarter and were 22% higher than the prior corresponding period Q1 FY21 (pcp).
- Iron ore shipments and production totalled 5.0 million wmt during the quarter, in line with prior quarter, and on target to meet FY22 guidance of 21-22 mtpa. This quarter’s iron ore shipments represented an increase of 40% pcp.
- The average realised iron ore price for the quarter was US$78.32 per dmt, with a realisation against Platts of 48%.
This realisation was negatively impacted by current quarter shipments priced on the lower September Platts price and negative adjustments totalling US$33.8m for finalisation of FY21 shipments.
- Mt Marion produced 99,536 dmt spodumene during the quarter, 13% lower than Q4 FY21. Shipments during the quarter were 54% lower than Q4 FY21 due to a shipment being delayed to the second quarter of FY22. Mt Marion remains on target to meet FY22 guidance of 450-475 ktpa.
- The average realised spodumene price for the quarter was US$740.6 per dmt.
- Significant engineering and detailed design continued to progress the Ashburton Project. The design and costing for
the transhippers have been finalised. Tug acquisition is progressing. The project economics are compelling through all economic cycles. The Company remains ready to execute as soon as final approvals are obtained.
- Consultation between the State Government, the Pilbara Port Authority, and Port Hedland users, regarding the Port Development Plan, continued during the quarter. MRL remains confident that approvals for the development of South West Creek will be granted in the near future.
- During the quarter the Company identified a significant gas discovery at Lockyer Deep-1. Refer to the ASX Announcement on 8 September 2021.
- The Company completed the acquisition of Red Hill Iron Limited’s (Red Hill) 40% participating interest in the Red Hill Iron Ore Joint Venture (RHIOJV), in the West Pilbara region of Western Australia. Refer to the ASX Announcement on 3 September 2021.
- Construction by Albemarle Corporation (NYSE: ALB) (Albemarle) for MARBL of the 50ktpa Kemerton Lithium Hydroxide Plant continued. Commercial production is expected mid-2022. The Company has also announced the restart of the Wodgina Lithium Mine with first spodumene production expected during 3Q CY22. Refer to the ASX Announcement on 25 October 2021.