Wodgina site is 100% owned by Mineral Resources Limited (ASX: MIN). The presentation of the Wodgina site highlights the occupational health and safety of the company. The company believes that safety is the most important criteria which lays foundation of the company’s future success. The company’s business consists of three area mining services, commodities and innovation. The company considers itself as a contactor by heart. This is the prime reason which drives the capability and success across the business. Mineral Resource Limited is Australia’s leading provider of the mining services and the largest specialist crushing contractor in the world. From the mining services, the annual earnings come from mining, crushing, processing, bulk haulage, port and shipment of goods through strategic port allocation and also accommodation and catering services. The company also shared an overview of its supply chain infrastructure. There are four channels of supply chain infrastructure. These are Strategic port allocations at Kwinana, Esperance and Utah Point, Extensive road train network in Northwest WA, Extensive off highway road trains in the south and Rail system in Southern WA. The company tries to create innovative mining equipments with high entry barrier in order to provide low cost solutions to the mining industry. As per the business model of Mineral Resource limited, the model tends to acquire either direct ownership or joint ownership of those ore bodies that are underdeveloped. It also includes funding of mine design, develop them and also secure the life of the contract for full pit to end customer services.
Development phase of Wodgina:
Mineral Resources Limited completed the acquisition of Wodgina mine in August 2016. The commencement of the mining operations in the Cassiterite Pit started from February 2017. The World’s first shipment of lithium DSO set sail was done from Port Hedland in the month of April 2017. The DSO operations started from April 2017 up to Dec 2018. The commencement of the construction of 750Ktpa 6% spodumene concentrate project started from March 2018.
At Wodgina, the ore body spread in the area approximately 1.8km by 1.2km and a depth more than 500m. There were around 8 holes that were drilled approximately 620m in depth. The ore were all above average grade. Conservative recovery of lithium is 65% which is materially low amongst the peer groups as detected in the metallurgical lab test. The presentation also covers the commissioning of the key asset and them becoming operational.
|Gas Pipeline||Q3 FY19||Q4 FY19|
|Power Station||Q3 FY19||Q3 FY19|
|Camp||Q1 FY19||Q2 FY19|
|Water Extraction||Q2 FY19||Q3 FY19|
|Crushing Plant||Q2 FY19||Q2 FY19|
|train 1||Q3 FY19||Q4 FY19|
|train 2||Q4 FY19||Q4 FY19|
|train 2||Q4 FY19||Q1 FY20|
In the Wodgina Lithium Project, the company also shares an update on the minority sale process. They say that Mineral Resources Limited will enter the process of divestment with its partners who will add value to the Wodgina that will in the interest of the shareholders of the company.
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