MinRes has reported hitting a major milestone, with its Onslow Iron project successfully reaching its 35Mtpa nameplate capacity. This achievement not only underpinned a strong quarter of production but also triggered a $200 million contingent payment for the company.
The Onslow project shipped 8.6 million wet metric tonnes (100 per cent basis), driving the company’s record total iron ore shipments of 11.4 wmt. The company’s lithium division also saw a significant boost, with realised prices rebounding 31 per cent to an average of US$849 per dry metric tonne.
MinRes Chair Malcolm Bundey released a statement this week, highlighting the importance and benefits of achieving nameplate capacity.
“It also reinforces the quality of our world-class mining services business, which has driven the successful ramp-up of the project’s pit-to-ship supply chain,” Bundey said.
“The additional $200 million payment continues to strengthen MinRes’ financial position and marks another important step in our program of organic deleveraging and disciplined balance sheet management.”
Financially, MinRes finished the quarter with a strong liquidity position of $1.1 billion and net debt holding steady at $5.4 billion. The company also successfully refinanced US$700 million in notes at its lowest-ever coupon.
Operationally, the company reported a significant 54 per cent reduction in recordable injuries and confirmed it is on track to meet its full-year guidance. In other divisional news, MinRes received a $41 million payment from Hancock Prospecting for its Lockyer-6 gas resource after the quarter ended.
