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| Mineral Resources |
Strategic Shift to Higher-Purity Production
Mineral Resources (MinRes) remains committed to its lithium targets for the 2025 financial year but is adjusting output to focus on higher-purity spodumene concentrate. This decision comes in response to a weakening lithium market and fluctuating prices.
Production Adjustments and Shipment Targets
MinRes projects spodumene concentrate shipments of 420,000-460,000 tonnes, down from 487,000 tonnes in 2024. The first half of the fiscal year saw 261,000 tonnes shipped, but volumes will decline following the Bald Hill plant shutdown in November. To maintain revenue, MinRes is enhancing concentrate grades at Mt Marion, even as grades at Bald Hill and Wodgina have decreased. Despite a year-on-year revenue decline, improved grades contributed to a fourth-quarter increase in revenue per tonne.
Cost Reduction and Strategic Partnerships
Operational costs at MinRes lithium sites currently exceed 2025 guidance. To mitigate this, the company is implementing new rostering strategies and adjusting mine plans at Mt Marion and Wodgina. Additionally, MinRes is collaborating with Livium to commercialize advanced lithium recovery technologies, aiming to improve efficiency and profitability.
MinRes is not alone in making production adjustments. Arcadium Lithium is placing its Mount Cattlin mine on care and maintenance, a move that could influence market prices.
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