PERTH, March 6, 2026, 15:33 AWST
- Mineral Resources reported Onslow Iron’s installed capacity has reached 40.9 million tonnes a year, thanks to three crushers now running at Ken’s Bore.
- The company links the update to its push for more consistent iron ore production and cost reductions.
- Onslow’s cash flows are in focus for investors, with MinRes pushing to trim debt and maintain its lithium investments.
Mineral Resources Limited said late Thursday that three crushers are now running at its Ken’s Bore site on the Onslow Iron project, giving the operation a total installed capacity of 40.9 million tonnes per year. The miner, which is relying more heavily on iron ore for cash flow, outlined the details in a post on its website.
Onslow Iron is now the key thread in MinRes’ earnings narrative, with unstable lithium markets forcing investors to scrutinize execution, cost controls and shipping. Last month, MinRes disclosed net debt of A$4.9 billion, while liquidity climbed to A$1.4 billion, following what the company described as its strongest first-half on record.
Chris Ellison, the Managing Director, said hitting nameplate capacity at Onslow Iron and notching up record Mining Services output “proves the company’s ability to execute major projects.” In the same update, Chair Malcolm Bundey highlighted progress on governance and the balance sheet, as well as improvements on the operations front.
MinRes on Thursday posted that ore out of the new Upper Cane deposit makes a 16 km trip down a dedicated haul road, landing in one of the crushers. From there, ore is stockpiled, reclaimed and pushed through a truck load-out facility, headed for transhippers at the Port of Ashburton. Those offshore vessels ferry ore over to larger ships.
Shares of MinRes were recently quoted at A$56.06, a 0.63% gain from the previous close, Intelligent Investor data show.
While the company doesn’t match the export scale of giants like Rio Tinto, BHP or Fortescue, it’s touting Onslow as a long-life, fully integrated pit-to-port setup. The goal: cut unit costs after the ramp-up phase is complete.
MinRes shipped 8.7 million tonnes from Onslow Iron in the October-December quarter, according to an ASX filing from late January. That’s on a 100% basis. The company put FOB costs at A$50 per wet metric tonne for the period. Net debt dropped to about A$4.9 billion, the same report showed. MinRes also highlighted a binding agreement inked in November, with POSCO Holdings set to pick up a 30% stake in the group’s operating lithium joint venture for US$765 million, pending conditions.
MinRes, in its Thursday update, pointed to equipment changes—like modular crushers and homegrown parts—that it says have helped reduce both dust and noise. The company is aiming to boost throughput, but it’s also tightening on-site safety standards.
The infrastructure MinRes is putting in place at Onslow comes with clear vulnerabilities. Any hitch in long-haul trucking, bottlenecks at the port, or marine loading delays could disrupt shipments. Iron ore prices also remain exposed—if steel demand drops, prices can slide in a hurry.
MinRes is projecting the POSCO deal will close during the first half of calendar 2026, a move that should shore up cash for paying down debt and funding capex. Still, there’s room for slippage as approvals and closing steps sometimes drag. Investors, meanwhile, have been eyeing lithium’s price volatility, tracking if it’ll prompt more cost reductions or tweaks to assets across the portfolio.
