The Mineral Resources Limited (ASX: MIN) share price has gone up around 9% today.
If you’re wondering what Mineral Resources is, it’s a miner with both iron ore and lithium assets.
Wodgina Lithium Mine
Mineral Resources announced a decision by the MARBL Lithium Joint Venture, a joint venture owned 40/60 by Mineral Resources and Albemarle Corporation to restart operations at the Wodgina Lithium Mine in the Pilbara region of Western Australia.
It’s expected that Wodgina will be restarted during the third quarter of 2022. It was placed in care and maintenance in November 2019 because of the weak global conditions at the time.
Wodgina, which is 120km south of Port Hedland, has installed processing capacity of 750,000 tonnes per annum. The mine has a gas-fired power plant, a 700-bed accommodation village and an airfield.
Initially, the focus will be on restarting one of Wodgina’s three 250,000 tonnes per year processing lines.
When market demand is sufficient, additional processing lines may be recommenced.
The joint venture was formed for the exploration, development, mining and processing of lithium and other minerals from Wodgina and for the operation of the Kemerton lithium hydroxide conversion assets. Mineral Resources is responsible for crushing and camp services.
Management comments
Mineral Resources Managing Director Chris Ellison said:
“It was the correct decision in late 2019 to place Wodgina on care and maintenance though it never dented our confidence in lithium’s long-term positive demand fundamentals. As we said at the time and repeat today, in Albemarle we have the best partner to deliver maximum and sustainable value from world-class assets like Wodgina.
Lithium is one of Mineral Resources’ two core commodities, alongside iron ore, and we have worked along with our 50%-owned Mt Marion Lithium Project in WA’s Goldfields and the soon to be completed 40%-owned Kemerton Hydroxide Facility, give Mineral Resources a world-class portfolio of highest-quality, long-life lithium assets in a tier 1 mining jurisdiction.”
Summary thoughts on the Mineral Resources share price
Investors clearly liked this news today, with such a strong reaction for the miner’s shares. Australia certainly has a lot of quality resources and the company is capitalising on two of them.
In terms of the profit generation, this seems like good news. However, I’m typically looking for ASX growth shares that are capable of producing more consistent profit growth year to year.
