- Mineral Resources Limited (ASX:MIN) is once again making its way to the top after the MD and mining billionaire Chris Ellison disclosed some ambitious plans for the future.
- Taking the podium at the AGM, Chris Ellison citied that the Company is all set to get double in size, i.e., doubling in revenue, number of people, tonnes shifted, and the bottom line.
- The MD mentioned that the growth is likely to come from a sevenfold increase in iron ore exports over the coming 2-3 years.
Mineral Resources Limited (ASX:MIN) is inching closer to its all-time high of $30.19 (intraday high on 3 September 2020) with prices reaching to a high of $29.73 (as on 20 November 2020 11:56 AM AEDT) after mining billionaire Chris Ellison disclosed some ambitious plans.
MIN concluded its Annual General Meeting, at which, the managing director – Chris Ellison took the podium and notified the shareholders that the Company he founded is all set to double in size. Mr Ellison citied that the double growth within three years would be well supported by a sevenfold increase in the iron ore exports.
Image Source: © Kalkine Group 2020
MIN, which exported 14.1 million tonnes of iron ore during the financial year 2020, now plans to leapfrog Gina Rinehart’s Hancock as the fourth largest iron ore exporter across the continent with its ambitious plans to take the iron ore export capacity to 92 million tonnes.
The plans to boost the iron ore export capacity includes uplifting the existing operations across WA’s Yilgarn region.
Apart from improving export capacity across its own prospects, MIN is currently looking for approval from the WA government for building two berths at South-West Creek to increase the iron ore export by 50 million tonnes across Port Headland.
Also, Mr Ellison is further planning on increasing the growth rate of the mining service business of the Company, and MIN sustainable growth for the next 3-5 years, driven by four major projects, i.e.,
- Yilgarn Hub (13 million tonnes per annum),
- Utah Point Strategy (14 million tonnes per annum),
- Ashburton Infrastructure Development (25 million tonnes per annum); and,
- Southwest Creek Development (40 million tonnes per annum).
Company to take supply chain reins
Furthermore, Mr Ellison also mentioned that the Company is now set to become a builder, owner, and operator of supply-chain infrastructure.
The growth is further expected to lead to a doubling in revenue, the number of people, tonnes shifted, and the bottom line.
MIN had been working on road trains with 300 tonnes capacity as the Company plans to build hundreds of kilometres of a private road. Also, MIN suggested that it has assurances from government departments and traditional owners to participate in various projects.
Mineral Resources to Boost Lithium
Apart from the iron ore business, Mr Ellison showed some enthusiasm towards the lithium unit and mentioned that the Company is keen to boost its lithium reserves as the lithium demand eventually picks up across the global front.
MIN shipped 394,000 dry metric tonnes of spodumene during in FY2020 from the Mt Marion project while keeping the Wodgina – one of the largest known hard rock lithium deposits across the globe, on care and maintenance to preserve the reserves at the prospect.