MinRes lifts output targets, haul road unscathed
Mineral Resources raised production targets at Onslow Iron’s two lithium mines and mining services arms; the latter was not affected by high diesel costs, he noted.
The Chris Ellison-led miner told the market it had not experienced any disruption to fuel supplies or operations due to conflict in the Middle East and had emerged largely unscathed from two hurricanes.
The iron ore and lithium producer said it received its diesel supply from “a major Australian fuel distributor” that continues to meet its obligations. Finance chief Mark Wilson said they were talking to their suppliers every day.
MinRes told the market its mining services margins were not affected by fuel costs, which it said were passed on to or provided by its customers. The division covers transportation and logistics and mining and processing, among other services.
Due to the rise in diesel prices, MinRes forecasts an increase in FOB costs next quarter of approximately $4 per wmt at Onslow Iron, $7 per wmt at Pilbara Hub and $60 per wmt at Wodgina and Mt Marion.
MinRes raised volume guidance at its flagship Onslow Iron, Wodgina, Mt Marion lithium mines and mining services division; In the mining services section, the target is currently between 320 million tons and 330 million tons. Organized guidance in the Pilbara Centre.
The Onslow Iron asset produced 7.8 million tonnes in the third quarter; Shipping volumes were impacted by tropical cyclones Mitchell and Narelle earlier this year.
Onslow Iron’s guidance has now been increased from 17.1 wmt to 18.8 wmt, from 17.7 wmt to 19.4 wmt; MinRes reported that costs are tracking at the lower end of guidance.
MinRes told the market that its previously problematic dedicated service road and other infrastructure were not damaged by major weather events, and operations returned to normal capacity soon after.
The miner’s two operating lithium mines, Wodgina and Mt Marion, produced 127,000 dmt of lithium, with the average price for the battery-grade product being US$2,105/dmt.
This price represents a 92 percent increase compared to the previous quarter.
MinRes is upgrading Wodgina from 270,000 dmt to 290,000 dmt, from 260,000 dmt to 280,000 dmt, and Mt Marion from 210,000 dmt to 230,000 dmt, from 190,000 dmt. Increasing it to 210,000 dmt.
The company said it continues to evaluate options for the potential restart of its mothballed lithium mine, Bald Hill, 50km southeast of Kambalda in the Goldfields.
More to come…
