Lithium miner Pilbara Minerals posted a sequential drop in March-quarter spodumene production and warned of further impact this quarter due to a severe labour shortage at its operations in Western Australia state.
Spodumene is primarily used in the production of high-purity lithium for use in lithium-ion batteries, which are a key component of electric vehicles.
Miners in Australia faced an acute shortage of essential mine workers last quarter as Western Australia kept tight border restrictions to contain the spread of Covid-19 infections.
The mineral-rich state relaxed curbs in March, but has seen a sharp rise in Covid-19 cases since then, further aggravating the labour issues.
Pilbara Minerals said it produced 81,431 dry metric tonnes (dmt) of spodumene concentrate in January-March, compared with 83 476 t in the December quarter.
Shipments of spodumene concentrate tumbled more than 25% from the December quarter to 58,383 dmt due to a delay in loading about 20 000 t of cargo at Port Hedland in late March.
"With Covid-19 expected to continue to impact the company's operations through the June quarter, there remains some uncertainty regarding production levels," Pilbara Minerals said.
The company, however, maintained its annual production forecast of 340 000 t to 380 000 t, but noted that continued Covid-19 impacts might see production coming in the lower half of the forecast range.