Mineral Resources Limited (ASX: MIN) has released its Quarterly Exploration and Mining Activities Report for the period to 30 September 2023.
Key points:
- Safety performance for the quarter was 0.20 Lost Time Injuries. Total Reportable Injury Frequency Rate was 1.96.
FY24 volume guidance remains unchanged for all operations. - Mining Services production volumes were 66Mt during the quarter, up 14% qoq.
- Quarterly iron ore production increased 8% qoq to 4.8M wet metric tonne (wmt). Shipments of 3.9M wmt were impacted by temporary haulage and port constraints. The average quarterly realised iron ore price was US$99 per dry metric tonne (dmt), representing an 87% realisation of the Platts 62% IODEX.
- All major approvals have now been received for the Onslow Iron Project in the Pilbara. The first ore-on-ship delivery is expected in June 2024. Drill and blast operations commenced at the Ken’s Bore mine site, clearing and earthworks started on the private haul road and construction at the port is well progressed.
- Ore mined at the Mt Marion lithium mine, in the Goldfields, increased 31% qoq as stripping of new areas continued to open multiple mining fronts to access fresh ore. Spodumene concentrate production increased 7% while shipments rose 5% totalling 64k dmt (attributable).
- Ore mined at the Wodgina lithium mine, in the Pilbara, increased 45% qoq following Stage 1 pit advancement, which allowed access to fresh ore, while pre-stripping of Stage 2 and 3 has progressed well.
- Wodgina achieved record quarterly spodumene concentrate production of 45k dmt (attributable), up 10% qoq. Shipments of 25k dmt (attributable) were impacted over the quarter due to unplanned port maintenance and congestion, with an additional shipment now scheduled in October.
- Wodgina lithium battery chemical production was 4.8kt and sales were 4.3kt in the quarter. The average realised lithium battery chemical revenue in the quarter was US$34,036/t (excluding VAT).
- Production testing of the North Erregulla Deep-1 gas discovery in the onshore Perth Basin produced outstanding results, with a peak instantaneous flow rate of 99 million standard cubic feet per day (mmscf/d) and a CO2 concentration of only 3%.
- On 30 August 2023, MinRes entered into an Implementation Agreement with the Deed Administrators of Alita Resources Limited, which provided for Alita to be placed into liquidation and for Alita to enter a share-sale agreement with MinRes for the disposal of assets that include its interest in the Bald Hill lithium mine. Completion of the transaction is expected to occur during November 2023.
- MinRes provided an updated Mineral Resources and Ore Reserves statement for its Mt Marion and Wodgina lithium deposits and an inaugural Mineral Resources and Ore Reserves statement for its Ken’s Bore iron ore deposit.
- Post the quarter, MinRes successfully completed a five-year US$1.1 billion Senior Unsecured Notes offering at 9.250%.
- Also post the quarter, MinRes closed on the restructuring of its MARBL joint venture with Albemarle Corporation. Albemarle will pay MinRes an estimated US$380-400 million for the net consideration for MinRes’ share of the Kemerton lithium hydroxide processing plant and completion adjustments at Wodgina and Kemerton. Full payment is expected to be received by December 2023.
