Australian producer Mineral Resources (MinRes) has agreed to sell 30pc of its stake in the Wodgina and Mount Marion lithium mines in Western Australia (WA) to South Korean producer Posco for $765mn under a binding agreement.
The deal does not include MinRes' dormant Bald Hill mine or exploration tenements in WA's Goldfields region, the company told investors in a call today. It is subject to approval from Australian regulator the Foreign Investment Review Board, which clears foreign purchases.
Posco will also sign an offtake agreement for 30pc of MinRes' share of Wodgina and Mount Marion's spodumene output, MinRes said. The South Korean producer expects to eventually get 270,000 t/yr of spodumene under the deal, it said on 12 November.
The Australian producer plans to ship 380,000-420,000t of spodumene out of the two mines on an equity basis over the 2025-26 financial year to 30 June. It currently runs Wodgina and Mount Marion as 50:50 joint ventures with US producer Albemarle and Chinese producer Jiangxi Ganfeng Lithium, respectively. Albemarle and Jiangxi Ganfeng will keep their stakes in the two projects.
MinRes and Posco have worked together before. Posco, US investor AMCI, and Chinese steelmaker Baosteel collectively own a 43pc stake in MinRes' 35mn t/yr Onslow iron project, which ramped up to capacity in August-October.
Posco also has an existing lithium partnership with Australian producer PLS, formerly known as Pilbara Minerals. It runs a 43,000 t/yr lithium hydroxide plant in Gwangyang with the Australian miner.
But the plant is facing challenges. The US government's removal of Inflation Reduction Act subsidies for electric vehicles in September cut demand for batteries and battery chemicals, PLS said on 24 October.
The venture does not plan to run the plant at full capacity until lithium hydroxide demand rises, Posco said in August.
