Pilbara Hub Reports 161Mt Resources and 50.7Mt Reserves at 57.5% Iron Grade
Mineral Resources Limited has released its inaugural Mineral Resources and Ore Reserves statements for the Pilbara Hub, revealing a substantial 161 million tonnes resource and 50.7 million tonnes reserve at robust iron grades. The inclusion of the Lamb Creek deposit promises to extend the hub’s production profile by five years, pending approvals.
- Pilbara Hub Mineral Resources total 161Mt at 57.0% Fe
- Ore Reserves stand at 50.7Mt at 57.5% Fe
- Pilbara Hub comprises Iron Valley, Wonmunna, and Lamb Creek deposits
- Lamb Creek development expected to extend production by five years
- Ore Reserve based on updated life of mine plans and robust economic assumptions
Pilbara Hub, A New Chapter for Mineral Resources
Mineral Resources Limited (ASX, MIN) has marked a significant milestone with the maiden release of Mineral Resources and Ore Reserves statements for its Pilbara Hub, encompassing the Iron Valley, Wonmunna, and Lamb Creek deposits. As of 30 June 2025, the hub boasts a combined Mineral Resource of 161 million tonnes grading 57.0% iron (Fe), alongside Ore Reserves of 50.7 million tonnes at 57.5% Fe. This announcement provides investors with a comprehensive view of the scale and quality underpinning the company’s iron ore portfolio in Western Australia.
The Pilbara Hub is strategically located approximately 300 kilometres south of Port Hedland and 80 kilometres east of Newman, with Iron Valley and Wonmunna already operational. The Lamb Creek deposit, currently in pre-development, is poised to integrate into the hub’s supply chain in fiscal year 2026, subject to final project approvals. This addition is expected to extend the hub’s production life by around five years without materially altering the cost profile, underscoring the project’s strategic value.
Robust Geological and Operational Foundations
The Mineral Resources estimate is grounded in rigorous geological modelling and sampling techniques consistent with industry standards and the JORC Code (2012). The deposits are classified as Bedded Iron Deposits within the Hamersley Province, with detailed drilling campaigns employing reverse circulation and diamond drilling methods to ensure data quality and representativeness. The resource classification reflects a high degree of confidence, with Indicated and Inferred categories delineated based on drill spacing and geological continuity.
Mining operations employ conventional open pit methods using hydraulic excavators and rigid body dump trucks, with selective mining units tailored to the orebody geometry. The Ore Reserve estimate incorporates operational performance adjustments, including ore loss and dilution, and is supported by updated life of mine plans that factor in cost, revenue, and commodity price assumptions. Notably, the Ore Reserve excludes Inferred material from economic valuation but includes it in scheduling to reflect operational realities.
Environmental and Regulatory Landscape
Environmental approvals for Iron Valley and Wonmunna are in place, facilitating ongoing mining activities. Lamb Creek is in the final stages of securing necessary approvals, with expectations for completion in the first half of fiscal 2026. The company has established native title and heritage agreements with relevant Indigenous groups, and project footprints have been designed to minimize cultural and environmental impacts. Waste rock characterization indicates low acid generation potential, aligning with Western Australian environmental standards.
Economic Outlook and Market Positioning
Mineral Resources’ Pilbara Hub operates under a low capital intensity model, leveraging integrated logistics including road haulage and port handling at Port Hedland. The Ore Reserve’s economic model assumes a long-run AUD/USD exchange rate of 0.7 and a Platts 62% iron ore index price of USD 85.0 per dry metric tonne CFR, with a pre-tax weighted average cost of capital of 11.9%. The life of mine plan is both cash generative and net present value positive under these assumptions, supported by internal sales and marketing expertise that calibrate product discounts based on quality and impurity profiles.
The inclusion of Lamb Creek is expected to sustain production volumes and extend the hub’s operational life, enhancing Mineral Resources’ competitive positioning in the iron ore sector. The company’s approach to infrastructure reuse and modular plant design at Lamb Creek reflects a pragmatic strategy to manage capital expenditure while maintaining operational flexibility.
Looking Ahead
With the Pilbara Hub’s maiden resource and reserve statements now public, Mineral Resources has laid a solid foundation for future growth. The successful integration of Lamb Creek and ongoing exploration and grade control drilling will be critical to sustaining production and unlocking further value. Investors will be watching closely as the company navigates regulatory approvals and operational ramp-up in the coming months.
Bottom Line?
The Pilbara Hub’s maiden reserves signal a robust platform for Mineral Resources, but the path to full Lamb Creek development and sustained production growth remains a key watchpoint.
Questions in the middle?
- When will final approvals for Lamb Creek be secured, and what are the potential delays?
- How will commodity price fluctuations impact the Pilbara Hub’s economic viability?
- What operational challenges might arise in integrating Lamb Creek into the existing supply chain?