Record earnings from lithium have driven a strong first half for mining company Mineral Resources, and it expects an even stronger second half.
MinRes on Friday posted a five-fold increase in underlying earnings before interest, tax, depreciation, amortisation and impairment of $939 million for the six months to December 31.
Net profit was $390 million, up $370 million from the same period last year, driven by lithium earnings after spodumene concentrate from its Mt Marion and Wodgina operations was converted into lithium battery chemicals.
There were record earnings from Mt Marion, a hard-rock lithium mine in WA's Goldfields region, under the agreement with China's Jiangxi Ganfeng Lithium.
"This half has seen us take the business from a mining services contractor and upstream miner to a leading downstream supplier of lithium to global auto manufacturers," MinRes Managing Director Chris Ellison said.
During the half, MinRes delivered its first earnings from lithium battery chemicals produced from Wodgina spodumene.
Wodgina, one of the largest known hard rock lithium deposits in the world, continues to ramp up with two trains operational and all three trains commissioned.
MinRes also extended its lithium battery chemicals supply deal with China's Ganfeng to December 2023, with an option for both parties to further extend it to the end of calendar 2024.
Mining services were steady during the half and there was an improved contribution from iron ore on higher achieved prices.
The company said significant progress continues to be made to unlock stranded deposits at the game-changing Onslow Iron project, which will enable it to be a low cost, long-life iron ore producer.
"We are well set up for an excellent year, with our balance sheet and performance across all areas in a great position," Mr Ellison said.
"We're also taking MinRes to the world by exploring options outside of Western Australia across the business."
The board declared a fully franked interim dividend for FY23 of $1.20 per share.
