The growth of Mineral Resources’ (MinRes) Utah Point hub in Western Australia saw the company enjoy improved second quarter iron ore production levels.
Utah Point, which comprises MinRes’ Wonmunna mine, Iron Valley site and the proposed Lamb Creek and Wedge mines, produced 2.96 million wet metric tonnes (wmt) for the second quarter of the 2022 financial year (FY22).
This was a 22 per cent rise on the first quarter of FY22 and a 38 per cent jump on the second quarter of the 2021 financial year (FY21).
Utah Point shipments were also on the up, with 2.85 million wmt shipped for the quarter – a 10 per cent increase on the first quarter of FY22 and a 76 per cent boost from the corresponding quarter in FY21.
Despite Utah Point’s successes, MinRes was not immune to the pandemic, with the company citing unplanned border closures and lockdowns following COVID-19 outbreaks as productivity hurdles. This also impacted operating costs.
“Productivity was lower than expected with the forced curtailment of staff movements adversely impacting expected production volumes,” MinRes said in their quarterly report.
“Operating costs remain under pressure, impacted by lower productivity, higher fuel prices and increased off-site costs for haulage and shipping.”
Productivity at MinRes’ Yilgarn hub in WA was particularly impacted as the company experienced an 11 per cent decrease in ore mined quarter on quarter (1.78 million wmt compared to 1.99 million wmt). This was also a 25 per cent drop from the corresponding quarter in FY21.
“Ore mined was lower in the quarter because of labour constraints and the removal of high-cost tonnes in line with the revised production guidance of 8 to 8.5 million tonnes,” the company stated.
“Ore produced remained consistent at 2.6 million wmt. Inventory was built during the quarter in preparation for delivery in the second half.”
In November, MinRes cut its FY22 guidance at the Yilgarn hub from 10.5-11 million wmt to 8-8.5 million wmt as the company navigates cost pressures at the operations.
Elsewhere, MinRes’ Mt Marion lithium operations in WA almost doubled its shipments for the quarter, with approximately 136,000 dry metric tonnes (dmt) setting sail in the three months to December 31.
The company continues to advance its Wodgina restart plan, with first product from the WA lithium operation expected during the first quarter of the 2023 financial year.