MinRes Announces Closure of Yilgarn Iron-Ore Mine

Mineral Resources (MinRes) has issued an update on its Yilgarn iron ore operations after completing an extensive viability assessment.

After thorough evaluation of all alternatives, the assessment has determined that sustaining the financial viability of the Yilgarn Hub beyond the end of calendar year 2024 is not feasible. Consequently, MinRes has made the challenging decision to halt iron ore shipments from the Yilgarn Hub by 31 December 2024.

Several factors have influenced this decision, including the limited remaining operational life of five mines spread across 220 kilometers, along with the substantial capital expenditure and lead time necessary to develop new resources to ensure ongoing supply continuity.

The Yilgarn Hub operations will gradually scale down over the next six months, with an anticipated shipment of up to four million wet metric tonnes by the end of the calendar year. Mining activities will then shift to care and maintenance starting in early 2025.

This transition will affect approximately 1,000 employees, and Mineral Resources (MinRes) will collaborate with them to explore redeployment opportunities within the company’s other operations. MinRes currently has nearly 800 vacancies across its business and anticipates additional openings in the coming months, including with the expansion of the Onslow Iron project.

Mineral Resources' executive leaders, along with the People team and in-house mental health counselors, have commenced on-site presence today to directly engage with employees regarding the transition and redeployment process. Employees from the MinRes Yilgarn Hub team will receive priority consideration for available positions and retraining opportunities. Unfortunately, contractors, suppliers, and those in the supply chain will also be affected, and MinRes will collaborate closely with their employers in the coming months.

Mineral Resources plans to redeploy five digger fleets, comprising 28 trucks and 25 pieces of ancillary equipment, across its operations. During the phased ramp-down of operations, MinRes will assess future options for its Yilgarn Hub assets, including potential rehabilitation or disposal. Exploration drilling and environmental studies targeting hematite and magnetite deposits will continue into 2025.

This decision is in line with the company's strategy to shift its iron ore operations towards low-cost, long-life projects, exemplified by the recent inaugural shipment from the Onslow Iron project.

Mineral Resources Managing Director Chris Ellison expressed: "This decision, while difficult, reflects our careful consideration following substantial investments aimed at extending the lifespan of our Yilgarn operations.

"Across Western Australia, we currently have nearly 800 job openings and are committed to relocating as many employees as possible to other MinRes projects, including our Onslow Iron venture, known for its low-cost, long-term prospects.

"Since our inaugural shipment from Carina in 2011, MinRes has been actively involved in the region. In 2018, with support from the WA Government, we intervened to safeguard hundreds of local jobs at Koolyanobbing, which were at risk due to Cliffs' departure. By the end of this year, our tenure at Koolyanobbing will have spanned over six and a half years, during which we've exported nearly 45 million tonnes via the Port of Esperance and invested $4.2 billion in our Yilgarn operations, surpassing our initial commitments.

"I extend my heartfelt thanks to everyone whose dedication and hard work over the past 13 years contributed to the success of this challenging operation."