Australia’s Mineral Resources Poised for Substantial Lithium Output Increase
Expansion and Acquisitions Drive Growth
Mineral Resources, an Australian diversified miner, is on track to double its lithium production in Western Australia in the next fiscal year. This surge in output follows the company's aggressive expansion at the Wodgina mine, co-owned with Albemarle, and strategic acquisitions in the lithium sector. The company has recently emerged as the world's second-largest producer of the lithium raw material spodumene.
Strategic Plans and Partnerships
Chris Ellison, the company's founder and Managing Director, shared at a shareholder meeting that Mineral Resources aims to complete its consolidation of lithium companies by mid-next year. The company is also evaluating the feasibility and location for a lithium chemicals conversion plant. Ellison hinted at potential future partnerships with major automotive manufacturers for the funding of the conversion process, though Mineral Resources itself does not plan to bear these costs.
Operational Developments
Currently, Mineral Resources operates three lithium projects in Western Australia. The Wodgina mine, where it holds a 50% stake alongside Albemarle, is set to expand its current 250,000-tonne capacity. The company also co-owns the Mt Marion mine with Ganfeng Lithium and recently acquired Bald Hill out of receivership. These developments are expected to boost the company's spodumene production significantly, potentially reaching 800,000 tonnes this financial year. An additional expansion at Wodgina could increase production to around 1 million tonnes annually.
Mining Services and Employment Growth
Ellison also highlighted the rapid expansion of Mineral Resources' mining services business, which is on course to become Australia's largest mining services provider in the coming year. The company's workforce grew by nearly 50% last year, fueled by new projects like the Onslow iron ore operations and expansions in its natural gas holdings.
