MinRes Maintains Li Targets, Adjusts Output Amid Market Weakness

Mineral Resources (MinRes)

Mineral Resources (MinRes) remains on track to meet its 2025 financial year spodumene concentrate targets. However, the company is adjusting output to prioritize higher-purity production amid a softening lithium market.

Production Adjustments and Grade Prioritization

MinRes aims for 420,000-460,000t of spodumene concentrate shipments, down from 487,000t in 2024. First-half shipments reached 261,000t, but will decrease due to the Bald Hill plant's November shutdown. The company increased average concentrate grade at Mt Marion, while grades at Bald Hill and Wodgina fell. Revenue per tonne rose in Q4, driven by grade improvements, despite a year-on-year drop. MinRes targets higher grades to counter falling lithium prices.

Cost Management and Strategic Partnerships

Furthermore, operating costs at all MinRes lithium sites currently exceed 2025 guidance. The company will reduce costs by implementing rostering and mine plan changes at Mt Marion and Wodgina. MinRes is collaborating with Livium to commercialize lithium recovery technologies, aiming to boost productivity. MinRes is not alone in cutting spodumene production. Arcadium Lithium will place its Mount Cattlin mine on care and maintenance, potentially impacting market prices.

MinRes Cuts Lithium Output as Prices Slide in FY2024-25

Mineral Resources

MinRes cuts lithium output after a tough year for spodumene prices and grades. The producer reported 571,000t of concentrate, down 9.5pc. MinRes cuts lithium output mainly because Bald Hill closed and Mount Marion prioritised higher grade. MinRes cuts lithium output even as Wodgina lifted tonnage.

Operations pivot to grade and cash flow

MinRes produced 257,000t at Mount Marion, down 22pc year on year. However, it lifted average shipped grade to 4.4pc from 4.1pc. Meanwhile, Wodgina raised output to 251,000t from 212,000t. Its shipped grade eased to 5.5pc from 5.6pc. As a result, Bald Hill moved to care and maintenance in November 2024.

Prices undercut revenue despite grade gains

Average revenue fell 36pc to $637/t from $988/t. Therefore, stronger grades could not offset weak spodumene prices. Pilbara Minerals also reported lower realised prices, down 43pc cif China. These moves mirror a broader lithium market slowdown.

MinRes produced 63,000t at Bald Hill in the first half. That was down from 91,000t a year earlier. The company cited the extended downturn as the closure driver. Western Australia remains the core hub for Mount Marion and Wodgina.

The Metalnomist Commentary

MinRes prioritised grade, flexibility and unit costs to ride out the trough. Watch recovery rates and contract mix as demand stabilises. A disciplined ramp at Wodgina could position margins for a faster rebound when prices turn.

Australia's MinRes Scales Back Lithium Production Amid Market Downturn

Company Adjusts Output Forecasts for Mount Marion and Wodgina Sites

Australian lithium and iron ore producer Mineral Resources (MinRes) has announced a reduction in lithium production at its Mount Marion and Wodgina sites due to the current downturn in the market.

On August 29, MinRes managing director Chris Ellison stated, "I'm starving the product going into the market. I don't want to oversupply the market. I don't want to waste my ore." This decision reflects a strategic move to prevent market oversaturation and manage inventory effectively.

For the fiscal year July 2024-June 2025, MinRes has revised its lithium shipment guidance. Mount Marion’s forecast is set at 150,000-170,000 dry metric tonnes (dmt), a decrease from the previous year's 190,000-220,000 dmt. Wodgina’s guidance is now 210,000-230,000 dmt, reduced from 210,000-240,000 dmt. The newer Bald Hill site aims to ship 120,000-145,000 dmt but has not yet issued formal guidance.

Ellison noted that while MinRes has adjusted its operational strategy to adapt to lower prices, it is not planning to shut down the mines. Instead, the company will minimize spending while conserving cash. MinRes' revenues for 2023-24 increased by 10% to approximately A$5.3 billion ($3.6 billion), partly due to higher iron ore revenues but offset by lower lithium prices.

Ellison expects lithium prices to remain depressed for about six months before rebounding early next year. He cautioned that if prices do not improve, many lithium operations might be forced to cease operations. MinRes will also avoid downstream processing of lithium, contrasting with competitors like Pilbara Minerals, due to perceived marginal returns. In June, MinRes ended a third-party processing agreement with US-based Albemarle for converting Wodgina spodumene into lithium hydroxide.

Livium and MinRes Advance Lithium Recovery Technology

Mineral Resources

Boosting Lithium Extraction from Spodumene Waste

Livium and Mineral Resources (MinRes) have partnered to enhance lithium recovery. They aim to optimize the commercialization of advanced extraction technology. The focus is on increasing lithium yield from spodumene waste. Livium's technology can boost lithium recovery by up to 50pc. This applies to fine and low-grade spodumene waste. The joint development agreement outlines key responsibilities. 

MinRes will supply raw materials at no cost. Livium will contribute its proprietary technology. Livium will also manage production processes and conduct studies. This collaboration seeks to improve efficiency in lithium production. The partnership addresses the challenge of spodumene waste. This waste often contains valuable lithium that is currently lost. The technology offers a significant advancement for the lithium industry.

Optimizing Spodumene Processing

The partnership focuses on optimizing spodumene processing. Spodumene is a key mineral source of lithium. Livium's extraction technology targets fine and low-grade waste. This waste is typically difficult to process. The technology increases the overall lithium yield. This improvement is crucial for meeting growing lithium demand. 

The collaboration between Livium and MinRes is strategic. It combines Livium's technological innovation with MinRes' operational expertise. This synergy accelerates the commercialization of the technology. The agreement ensures a sustainable supply of raw materials. This supply is essential for the development process. The project aims to make lithium production more efficient and sustainable.