OPERATIONAL REVIEW - LITHIUM
MINRES’ PORTFOLIO OF WORLD-CLASS LITHIUM ASSETS IS GROWING OUR POSITION IN THE GLOBAL BATTERY SUPPLY CHAIN AND SUPPORTING THE WORLD’S CLEAN ENERGY TRANSITION. A collective shift towards decarbonisation and net zero targets is driving increasing demand for electric vehicles and energy storage solutions powered by lithium-ion batteries. As global demand for batteries increases and with few lithium mines in operation worldwide, MinRes anticipates a high level of lithium supply uncertainty for at least the next decade. More than half of all lithium is sourced from hard rock deposits and Western Australia boasts the world’s largest hard rock reserves. WA is also considered one of the most attractive jurisdictions for mining investment by the Fraser Institute, positioning MinRes to consistently supply responsibly sourced lithium to support the clean energy transition. Since identifying lithium as a target commodity more than a decade ago, MinRes has set about building a portfolio of worldclass assets that can deliver long-term value for the company and its shareholders. Today, the company has matured into a globally significant lithium producer with strong strategic partnerships alongside international leaders in the production of lithium battery products. MinRes’ upstream lithium portfolio includes ownership in two of the world’s largest hard rock mines, at Wodgina in the Pilbara region and Mt Marion in the Goldfields region of WA. The company is focused on maximising the potential of its lithium portfolio through exploration and expansion activities, while also pursuing downstream opportunities and industry partnerships that build a globally diversified presence in the lithium battery supply chain. WODGINA LITHIUM The Wodgina lithium operation is located approximately 120 kilometres south of Port Hedland and is one of the world’s largest known hard rock lithium deposits.
42 I MINERAL RESOURCES LIMITED 2023 ANNUAL REPORT
This asset forms part of an unincorporated joint venture, between MinRes and leading battery chemicals producer Albemarle Corporation (Albemarle), known as the MARBL JV. MinRes manages all mining operations at Wodgina, with product transported by MinRes to Port Hedland for export. Production ramp up at Wodgina continued in FY23, with first spodumene concentrate produced from Train 2 in the first quarter. During the same period, Train 3 reached practical completion and now provides additional flexibility to maximise production and optimise recoveries. Wodgina’s mine expansion commenced in Q4 FY23 through second and third stage mine developments, which are targeted for completion by mid-FY24. The expansion will provide access to multiple mining areas, with additional ore enabling the existing spodumene concentrate plant – Trains 1, 2 and 3 – to operate at full capacity while providing scope to support potential additional trains in the future. Plant expansion studies are underway to identify options for increasing the project’s production, subject to market demand. This year MinRes and Albemarle also announced amendments to the MARBL JV that simplify commercial arrangements between the two companies and ensure each has the flexibility and focus required to deliver value for their shareholders in an evolving market. Agreed amendments included MinRes’ share of the Wodgina lithium mine increasing from 40 per cent to 50 per cent and the company taking control of marketing its share of Wodgina spodumene. MinRes will transition to market its share of Wodgina spodumene concentrate and lithium battery chemicals within two months of the completion date via an office and warehouse in China.