MINERAL RESOURCES LIMITED 2020 ANNUAL REPORT | ABN 33 118 549 910 MINERAL RESOURCES LIMITED 2020 ANNUAL REPORT COVID-19 THIS YEAR IS DEDICATED TO OUR PEOPLE. TEAMWORK NEVER MATTERED MORE. Mineral Resources has a proud history of innovating and adapting to the changing environment in which we live and operate. But no one could have predicted that the outbreak of a bug named COVID-19, a long way away from Western Australia, would threaten to stop the world – including the world MRL operates in. It was clear to the MRL leadership team that this dangerous and insidious virus would become a global issue – and that we needed to do everything possible to minimise the impact on our people and, therefore, our business. From the very beginning, our guiding principle that would drive our actions – and continues to drive everything we do – was to keep all our people in their jobs. We needed to make sure that everyone kept collecting their normal pay to enable them to support their family with certainty and have the knowledge their home was safe and secure. Everything else to us was secondary. With a global issue like the coronavirus pandemic, there was always going to be a limit to the steps we could take and the actions we could control. The success of MRL’s response to the coronavirus pandemic has been extraordinary and is the result of the discipline displayed by each and every member of the MRL family. What we have done has not been easy. But every action taken was with a single goal in mind – to keep every MRL person employed. Together, we have saved lives, avoided hardship and ensured we have a bright economic future. So very early on, before COVID-19 took over Australia, we were alert to the warning signs and devised a response plan and started implementing the necessary actions. Central to our plan was to launch what has arguably become the largest and most sophisticated private sector PCR COVID-19 swab screening program in Australia. At the outset, we secured world-class, US-made, gold standard COVID testing equipment capable of performing PCR-SARS-CoV-2 tests – it is the most accurate test in the world today. We engaged two independent National Association of Testing Authorities (NATA) accredited pathology laboratories, we have more than 40 nurses and collectors trained in the swab - screening process, and we opened up seven screening facilities – two in the Perth metropolitan area and five in regional areas in the north, south and east of the State. In line with our sole focus on protecting the jobs of the MRL team of more than 3,100 men and women, we made COVID-19 swab screening a mandatory part of our fit-for-work regime for anyone attending one of our mine sites or working for MRL on a client site. We have offered the screening service to other resource companies to ensure this pandemic does not force the closure of Western Australia’s mining industry. We have partnered with Curtin University’s Faculty of Health Sciences to provide our results for a study into incidence of asymptomatic infection within the FIFO worker population of Western Australia. The data obtained through this research study is expected to be invaluable to the Government and the public health officials responsible for managing the response to this crisis and beyond. Since April, more than 50,000 men and women have been swab-screened. In fact, our program has become so important to Western Australia that more than 60 companies working in the resources sector are now sending their FIFO teams to our swab screening facilities prior to shift start. What that means is our teams can continue to safely go about their work, confident with the knowledge they, and their work mates, are healthy and there is no risk to their families. Since January 2020, we have continuously monitored developments around the world along with guidelines introduced by the federal and state governments and the health authorities. Very early on, across all of our sites, the discipline of our people was extraordinary. They immediately adapted to all government guidelines. Some relocated, being separated from their families for long periods, not knowing how long for. To support our people through this period, we knew we had to do more for them. We introduced new technology to help keep us all connected and up-to-date with the ever-changing situation. As a major partner of the West Coast Eagles, when we heard that the Australian Rules Football League (AFL) season was suspended, we acted immediately. We engaged six of the club’s high-performance coaching team, who were temporarily stood down, to work with our employees on site to help combat the psychological issues attributed to longer rosters, isolation and distancing protocols. The West Coast Eagles coaches provided our people on site with additional support and guidance during these difficult times with one-on-one sessions focussed on motivation and mental and physical health including mindfulness, nutrition and wellbeing. We launched a weekly live online comedy series, exclusive to our employees, featuring Australian comedian Peter Rowsthorn. Each week, Peter hosted his fellow comedian and celebrity friends, broadcasting into the homes and dongas of our people wherever they were. This interactive series provided some light-hearted entertainment to help counteract the isolation impacts to our people, particularly on our mine sites. We increased our hygiene measures, employed additional cleaners, and increased the cleaning schedules at our sites and offices, and continue this rigorous schedule today. Although restrictions in Western Australia have eased, we remain committed to keeping our people healthy and well, and will continue screening our workers until COVID-19 is no longer a threat. We are in regular contact with others in our industry and government departments, sharing knowledge and working together to find solutions. We actively contribute to the Western Australian Chamber of Minerals and Energy COVID-19 working group to ensure a coordinated response from the resources industry. As an important contributor to the Western Australian and Australian economies, we will continue to work with government to do what we can to ensure our operations contribute positively to the economy and society through these challenging times. CONTENTS CHAIRMAN’S REVIEW 1 MANAGING DIRECTOR’S REPORT 3 MINERAL RESOURCES AT A GLANCE 7 OPERATIONAL REVIEW 16 MINING SERVICES 17 COMMODITIES 21 FINANCIAL REVIEW 28 SUSTAINABILITY REVIEW 32 HEALTH AND SAFETY 35 PEOPLE 36 ENVIRONMENT 37 CLIMATE CHANGE 38 SOCIAL 40 ANNUAL FINANCIAL REPORT – 30 JUNE 2020 42 DIRECTORS’ REPORT 43 REMUNERATION REPORT 48 FINANCIAL STATEMENTS 76 SHAREHOLDER INFORMATION AND CORPORATE DIRECTORY 138 ABOUT THIS REPORT This annual report is a summary of Mineral Resources Limited’s operations and financial results for the financial year ended 30 June 2020. All references to ‘Mineral Resources’, ‘MRL’, ‘the Company’, ‘the Group’, ‘we’, ‘us’ and ‘our’ refer to Mineral Resources Limited (ABN 33 118 549 910) and the entities it controlled, unless otherwise stated. References in this report to a ‘year’ are to the financial year ended 30 June 2020 unless otherwise stated. All dollar figures are expressed in Australian dollars (AUD) unless otherwise stated. All references to ‘Indigenous’ people are intended to include Aboriginal and/or Torres Strait Islander people. Photography by Russell James. Creative design by Ali Franco. VISION WHO WE ARE To be recognised as one of the great Australian companies and a leading provider of innovative and sustainable MINERAL RESOURCES mining services. IS AN INNOVATIVE AND PURPOSE To provide innovative and low- LEADING MINING SERVICES cost solutions across the mining infrastructure supply chain, by operating with integrity and respect, COMPANY, WITH A working in partnership with our clients, our customers, our people and our GROWING WORLD-CLASS community. PORTFOLIO OF MINING THE WAY WE WORK WE ARE ONE TEAM OPERATIONS ACROSS • The safety and wellbeing of our people is at the forefront of all that we do MULTIPLE COMMODITIES, • We work together to achieve the best results for our people, clients INCLUDING IRON ORE and stakeholders • We care for, respect and invest in our people, the environment AND LITHIUM. and the communities in which we operate WE ARE HIGH PERFORMING • We achieve exceptional results through a disciplined and professional approach • We plan and take ownership of our areas of responsibility • We always deliver and that sets us apart WE ARE ENTREPRENEURIAL • We empower our people to challenge the status quo and actively explore new ideas and opportunities • We look for better ways to mitigate risk, deliver on commitments and create long-term value MINERAL RESOURCES • We recognise, support and harness the diverse talents of our people WE’RE DIFFERENT and partners CHAIRMAN'S REVIEW ON BEHALF OF THE BOARD, IT GIVES ME GREAT PLEASURE TO PRESENT THE ANNUAL REPORT FOR THE 2020 FINANCIAL YEAR. If the past year has taught us one lesson only, then it is I am confident MRL will remain vigilant and stay Iron ore prices were up 16 per cent compared to that good systems and practices and strong leadership ahead of this insidious virus. MRL’s leadership has last year and the US dollar exchange rate provided will prevail even during unprecedented times, which is been exemplary and a credit to our entire team – as favourable support. It is not often that the USD/AUD why I am so extraordinarily proud of the achievements Shareholders, you should be immensely proud. exchange rate improves at the same time as the iron of the entire MRL team. ore price increases and MRL was able to respond, Globally, it has been an interesting year as the world which contributed to record earnings.