Australia's MinRes posts higher 1Q spodumene output
Perth-based major lithium and iron ore producer Mineral Resources (MinRes) has reported higher total spodumene concentrate output from its sites in January-March, and higher spodumene prices later in the quarter.
Total attributable spodumene concentrate production of the firm across its assets rose to 170,000 dry metric tonnes (dmt) (see table for detailed breakdown), up by 3.7pc on the quarter and by 63pc on the year, according to the firm's latest quarterly activity report. Total attributable spodumene concentrate shipped volumes fell by 2.9pc on the quarter but rose by 50pc on the year to 166,000dmt.
MinRes has an ambitious target of 1mn t/yr of lithium attributable within the next four years, said its managing director Chris Ellison last month during the firm's half-year results presentation. The firm has been aggressively expanding, several delegates told Argus at the Tribeca Future Facing Commodities conference held in Singapore on 26 March. The firm last month agreed to buy fellow developer Poseidon Nickel's concentrator plant in Western Australia as it seeks to retrofit it for lithium processing.
MinRes' Mount Marion site saw higher output, driven by higher plant utilisation and improved ore recoveries as the firm continues to advance its plant improvement initiatives.
The realised price for spodumene concentrate out of its Mount Marion site was at $718/dmt on a 4.2pc-grade basis, which was above the product's year-to-date fob costs of A$518/dmt ($338/dmt). The realised price translates to $1,048/dmt for 6pc-grade lithium concentrate (spodumene), said the firm.
The firm did not process the spodumene concentrate produced from its Wodgina site during the quarter into lithium battery chemicals, citing "prevailing pricing dynamics", but instead resumed spodumene concentrate spot sales.
The realised spodumene concentrate price at the site came in at $974/dmt on 5.6pc-grade basis, which translates to $1,028/dmt for 6pc-grade lithium concentrate (spodumene). The lithium battery chemical realised price, excluding value added tax, came in at $11,098/t.
MinRes in November 2023 finalised the acquisition of the Bald Hill lithium mine from Alita Resources. January-March was the mine's first full production quarter, hence output was dragged down by limited availability of higher-grade feed, but this is expected to recover in April-June, said the firm. The realised spodumene concentrate price at the Bald Hill site was $878/dmt on 5.1pc-grade basis, which translates to $1,016/dmt for 6pc-grade spodumene concentrate.
Argus-assessed prices for 6pc grade spodumene concentrate dipped to $1,080-1,180/t cif China on 23 April, from $1,100-1,200/t cif China a week earlier. Salts producers reduced spodumene bid prices because of a fall in salts prices two weeks earlier.
| MinRes lithium performance | |||
| Jan-Mar '24 | Oct-Dec '23 | Jan-Mar '23 | |
| Spodumene concentrate production (k dmt) | |||
| Mt Marion (50pc attributable basis) | 91 | 83 | 60 |
| Wodgina (50pc attributable basis) | 49 | 55 | 44 |
| Bald Hill (100pc attributable basis) | 30 | 26 | NA |
| Total | 170 | 164 | 104 |
| Spodumene concentrate shipments (k dmt) | |||
| Mt Marion (50pc attributable basis) | 76 | 86 | 62 |
| Wodgina (50pc attributable basis) | 64 | 65 | 49 |
| Bald Hill (100pc attributable basis) | 26 | 20 | NA |
| Total | 166 | 171 | 111 |
| Lithium battery chemical (t) | |||
| Wodgina production (50pc attributable basis) | 6,793 | 6,798 | 3,246 |
| Wodgina sales (50pc attributable basis) | 6,954 | 6,474 | 1,504 |
| Source: MinRes | |||
| MinRes previously owned 40pc of the Wodgina project, which increased to 50pc starting from 18 October 2023. Figures for Wodgina before 18 October 2023 were on 40pc attributable basis. | |||
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