News: MIN UPDATE 1-Australia's MinRes says lithium operations profitable at current prices

(Updates throughout with details and background)

Jan 25 (Reuters) - Australia's Mineral Resources (MIN) on Thursday reported a jump in its second-quarter spodumene concentrate output from Mt Marion mine and said operations remained profitable despite a steep drop in lithium prices.

The diversified miner produced 83,000 dry metric tonnes (dmt) of spodumene or lithium ore concentrate at Mt Marion and 55,000 dmt at Wodgina mine for the three months ended Dec. 31, up 30% and 22%, respectively, compared to the previous quarter.

"Wodgina, Mt Marion and Bald Hill are profitable at current prices," MinRes said.

This comes at a time when analysts said Australian lithium producers may be set to track the nickel industry in project curtailments and delays this reporting season, given slower-than-expected electric vehicle (EV) sales, but the jolt is likely to be less severe.

Both sectors are contending with a sharp drop in raw material prices because of the EV slowdown, but lithium is expected to snap back faster because its oversupply is seen as short term.

MinRes also forecast costs at Wodgina and Mt Marion to decrease this year as feed quality improves.