Power Supply Dispute and Regulatory Approvals Pose Challenges for Admiralty’s Mariposa Ramp-Up

Production Progress at Mariposa

Admiralty Resources NL (ASX: ADY) has reported solid progress in the March 2025 quarter at its flagship Mariposa Iron Ore Project in Chile. The company delivered a total of 100,000 tonnes of high-quality iron ore concentrate, averaging 67% iron content, to Compania Minera del Pacifico’s Totoralillo Port. This milestone builds on pre-production stockpiles and demonstrates Admiralty’s capability to produce market-ready concentrate as it advances towards its 500,000-tonne mining target.

Mining activities during the quarter yielded 104,780 tonnes, with production output reaching 33,663 tonnes. Monthly production remained consistent, reflecting steady operational ramp-up as the company focuses on both quantity and quality of its final product.

Infrastructure Developments and Power Supply Challenges

Significant infrastructure milestones were achieved, including the completion of pit reinforcement binding, foundation works, and the construction of a tailings dam with associated pipeline installation. Water storage facilities for mineral processing are nearing completion, expected to be operational by the end of April 2025.

On the power front, Admiralty secured approval from Chile’s national electricity operator, Coordinador Electrico Nacional, to access electricity via a transmission line. Engagement with local company Tucapel and contractor Agrosuper is underway to establish a substation at the mine site. However, a contractual dispute between Agrosuper and its supplier Libertad has introduced uncertainty around power cable installation, prompting Admiralty to explore alternative solutions to ensure stable electricity supply. Meanwhile, an interim renewable energy supply agreement with Grenergy Chile is in place, with a final contract anticipated next quarter.

Regulatory and Environmental Progress

Admiralty continues to navigate regulatory processes, with the transportation Environmental Impact Statement (DIA) submitted for approval and a site inspection completed by Chilean authorities. The company awaits further queries as it works closely with Puerto Las Losas port authorities on infrastructure investments, including a potential new loading crane for Panamax-sized vessels.

Beyond Mariposa, Admiralty is advancing environmental approvals for its Soberana and La Chulula projects, with test work underway and production permits being sought. These projects benefit from proximity to Mariposa, potentially streamlining future development.

Corporate and Financial Update

On the corporate front, Admiralty paid $79,000 in director remuneration during the quarter, with no direct development costs incurred due to cost-sharing arrangements under a Joint Operating Agreement with Hainan. The company has placed additional funds in a term deposit with National Australia Bank, maintaining liquidity flexibility.

In line with its capital management strategy, Admiralty is exploring options to convert outstanding debt into equity, subject to regulatory and shareholder approvals. The company reported a net loss of $2.31 million for the six months ending December 2024, reflecting ongoing investment in project development.

Notably, no activities were reported for the Australian Pyke Hill cobalt and nickel project during the quarter, indicating a focus on Chilean iron ore assets for now.

Looking Ahead

Admiralty’s steady production ramp-up, coupled with critical infrastructure and regulatory progress, positions the Mariposa project for further growth. However, resolution of power supply disputes and final environmental approvals remain key near-term milestones. The company’s strategic capital management initiatives will also be closely watched by investors as it seeks to strengthen its financial footing.