OPERATIONAL REVIEW - IRON ORE
MINRES IS AUSTRALIA’S FIFTH LARGEST IRON ORE PRODUCER, OPERATING THREE IRON ORE HUBS ACROSS WESTERN AUSTRALIA. MinRes continues to grow a portfolio of iron ore operations spanning the Yilgarn, Pilbara and Onslow regions.
Australian Aboriginal Mining Corporation, with first ore achieved just five months after construction began.
Despite fluctuating iron ore prices in FY23, MinRes delivered stronger year-on-year iron ore earnings on the back of improved achieved prices from lower product discounts and the reintroduction of lump product in the Yilgarn.
During FY23, production ramp up at Wonmunna continued and several important milestones were achieved. This included access to the site’s north-east deposits, final stage development of the central pit and a successful stockyard extension.
As one of the company’s core commodities, iron ore remains critical to MinRes’ growth strategy and significant work is under way to transition from short-life, high-cost mines to lower-cost, long-life operations. The cornerstone of this transformational change will be the Onslow Iron project, which is set to unlock billions of tonnes of stranded iron ore deposits in the Pilbara.
The Iron Valley iron ore operation is located 75 kilometres north-west of Newman and is MinRes’ oldest iron ore-producing mine. Operations continued in the central pit throughout FY23 and will continue into FY24.
YILGARN HUB The Yilgarn Hub, located in the Goldfields region of Western Australia, incorporates the Koolyanobbing, Parker Range and Carina mines. Product is transported by rail and exported through the Port of Esperance. In 2022, the Koolyanobbing and Carina processing plants were successfully converted to process both lump and fines products, with lump shipments commencing from Q2 FY23. Lump production from Yilgarn increased to 29 per cent and began to realise higher lump premiums as the quality stabilised. MinRes is exploring transforming its Yilgarn Hub from a hematite to magnetite operation, which will extend the life of the operation. A Phase 1 and Phase 2 drilling program at Koolyanobbing in FY23 helped define the resource potential of an initial mining area footprint and results were promising. PILBARA HUB The Pilbara Hub includes MinRes’ Wonmunna and Iron Valley mine sites, with product from both sites transported by road to Port Hedland for export through Utah Point. The Wonmunna iron ore operation is located 80 kilometres northwest of Newman and 360 kilometres south of Port Hedland. The mine was purchased in FY21 as an undeveloped project from the
36 I MINERAL RESOURCES LIMITED 2023 ANNUAL REPORT
Located 50 kilometres west of Iron Valley is Lamb Creek, a MinResowned iron ore deposit and exploration project. Production from Lamb Creek is planned to be incorporated into MinRes’ Utah Point iron ore blend, which includes tonnes from Iron Valley and Wonmunna. Primary approvals are expected in FY24, with production forecast to commence in early to mid FY25. The next phase of development for the Pilbara Hub is the South West Creek project, a pit-to-port iron ore infrastructure solution that could see the company ship an additional 20 million tonnes of iron ore per annum from the Port of Port Hedland. In 2021, MinRes entered into a Port and Rail Agreement with Hancock Prospecting (Hancock) and Roy Hill to jointly investigate and develop a new iron ore export facility at the Stanley Point Berth at South West Creek in the port of Port Hedland. Roy Hill would provide services to both MinRes and Hancock for development and operation of the project, including rail haulage and port services. It is proposed South West Creek production will be sourced from the Marillana iron ore project, located 100 kilometres north-west of Newman, and supplemented by existing Iron Valley operations. Throughout FY23, MinRes undertook appropriate due diligence across approvals and value engineering. The project remains subject to further approvals and agreements, subject to further approvals and agreements and a positive final investment decision by MinRes and Hancock.