The coronavirus (COVID-19) crisis did not materially impact Mineral Resources Limited (ASX: MIN; MRL or Company) during Q4 FY20 and FY20 overall. From April to 30 June, MRL conducted more than 25,000 COVID-19 PCR screening tests for resource industry workers through MRL’s seven screening facilities in metropolitan Perth and regional areas across the WA. All results were negative. Our ongoing focus has been to protect our employees and their families from the virus while keeping everyone employed to ensure that everyone has a pay cheque to take home. As a result of these actions, we have maintained and increased production.

•      Safety performance continued to improve, with a Total Reportable Injury Frequency Rate (TRIFR) for the past 12 months of 3.29. This represented an improvement of 18% compared to FY19.

•      A record breaking quarter for iron ore business with total iron ore production of 4.2 million (m) wet metric tonnes (wmt), 22% higher than Q3 FY20. Iron ore shipments for the quarter were 4.4m wmt, up 53% from Q3 FY20. Total FY20 iron ore shipments of 14.1m wmt were 33% higher than FY19.

•      Koolyanobbing ramped up to ship 2.6m wmt iron ore during Q4 FY20. Shipments in the month of June of 1.1m wmt represented an annualised run rate of 12.7 mtpa. Total FY20 shipments of 7.4m wmt were in line with guidance.

•      Iron Valley shipped 1.8m wmt iron ore for the quarter, an increase of 35% from the previous quarter. Total FY20 shipments of 6.7m wmt were in line with guidance.

•      Average iron ore revenue received of US$84 per dry metric tonne (dmt) during the quarter, 12% higher than the previous quarter.

•      Mt Marion Lithium Project achieved record production of 146,000 wmt and record shipments of 114,000 wmt of spodumene concentrate during the quarter.

•      During the quarter, MRL completed a transaction comprising a series of arrangements with BCI Minerals Limited (ASX: BCI, BCI) that will enhance the Company’s iron ore footprint in the Pilbara region, including the purchase of the Buckland Project from BCI for cash consideration of up to $20 million and the optimisation of the existing Iron Valley Agreement whereby BCI will participate in the capital investment required to extend the mine life at Iron Valley through a partial rebate of MRL’s payments to BCI.1

•      MRL also completed an Asset Sale Agreement with Resources Development Group Limited (ASX: RDG, RDG) to transfer a 100% interest in the Company’s non-core Ant Hill and Sunday Hill manganese assets to RDG in return for MRL receiving scrip equivalent to a 75% shareholding in RDG. The transaction was completed during the quarter.2

Table: Iron Ore Summary

Koolyanobbing

Koolyanobbing operations ramped up to an annualised run rate 12.7mtpa based on the month of June, with both Deception and Jackson pits successfully transitioning to lower-strip ore delivery phases.

The primary focus for the quarter was the Deception pit. Stage 3 cut back and waste stripping have progressed well and mining of ore from Stage 2 is on schedule. Ground water has been encountered in the bottom of the pit and requires short-term remediation works to ensure continued ore presentation from the pit.

The F3 pit is reaching the bottom of the orebody with final benches being removed. In parallel, access works and site clearing commenced on the new F1 pit. After delays while awaiting environmental approvals, the F1 pit start-up is targeted for Q1 FY21.

Rail and shipping also ramped up ahead of schedule to 12.7mtpa in Q4, delivering 2.6mt shipped for Q4 and total shipped tonnes of 7.4m wmt for FY20.

Iron Valley

Iron Valley mining increased in Q4 in line with the medium-term mine plan.

Stage 1 of the C10 pit cutback progressed in line with the development plan for the quarter, with Stage 2 commencing early. Dewatering of the C8 pit continued with production bores equipped and running.

Additional shipping in Q4 was achieved with the inclusion of stockpiled material crushed and hauled to port.