Commodities, Iron ore, News, Production

Iron ore demand drives Mineral Resources to record

Iron ore

Mineral Resources has delivered its highest-ever earnings in the 2020-21 financial year and remains confident of continued growth despite COVID-19 challenges.

The company’s overall earnings before interest, tax depreciation and amortisation (EBITDA) reached $1.9 billion, up 148 per cent from the previous period.

Mineral Resources’ overall revenue was $3.7 billion for the 2021 financial year.

The company produced a record 17.3 million tonnes of iron ore in the 2020-21 financial year, up from 14 million tonnes in the previous period.

According to Mineral Resources, the growth was due to a continued ramp up at its Yilgarn and Utah Point mining hubs in Western Australia.

This resulted in a 97 per cent increase to iron ore revenue, which rocketed to $3 billion.

Mineral Resources managing director Chris Ellison said the company battled hard against COVID-19 to achieve a record year.

“This has been a year like no other. The constant threat of COVID-19 has forced us to remain vigilant to keep this highly contagious virus out of our operations,” Ellison said.

“Mineral Resources has delivered a record year in terms of tonnes produced and shipped, revenue and profit reported, and dividends declared.

“The full-year result is the culmination of continued strong growth in our mining services division, which is our company’s heartbeat, and realises the rewards from our decision to build long- horizon businesses in iron ore and lithium.”

Ellison said the company’s outlook was positive despite the COVID-19 impacts that continue to hamper Western Australia.

“This result positions Mineral Resources well to build our business with further significant investment in iron ore in particular, and seeking additional growth in our mining services division through the delivery of highest-quality, value- adding and innovative solutions for our clients,” he said.

“The outlook for Mineral Resources is positive, notwithstanding the impacts related to COVID-19 and the cost pressures creeping into the West Australian resources sector.

“Our focus remains on providing a safe and supportive workplace that attracts and retains the best people in our industry.”

Mineral Resources produced 485,000 tonnes of spodumene in the 2021 financial year at the Mt Marion lithium joint venture in Western Australia, up from 394,000 tonnes in the previous period.

Previous ArticleNext Article
Send this to a friend