Mineral Resources Limited

Wednesday, December 23rd, 2009

With steel production and consumption in China heading back up towards pre-global financial crisis levels, the major resource companies have been amongst the best stock performers in recent months.

Volumes of iron ore, coal and manganese have increased dramatically from earlier this year and this has led to a rise in freight rates as measured by the Baltic Dry Index.

Australian producers however, have had the rise in demand offset by the strong rise in the Australian dollar. Thus revenues and reported profits for FY10 will not have the full benefit of the increased demand.

Iron ore and coal producers have also had to deal with contract prices set back in March that were based upon lower rates of demand and weaker spot prices following, the world economic downturn of 2008.

There will undoubtedly be an increase in the contract prices negotiated with China in March to April 2010, with some of the major miners benefiting from this, however, Mineral Resources Limited (“MIN”) is one company that is currently profiting from increasing volumes in one of its major divisions (i.e. crushing).

The Company

Mineral Resources is a diversified mining and mining services company and operates through three divisions:

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