The Australian company Mineral Resources (MinRes) has agreed to sell 30% of its stake in the Wodgina and Mount Marion lithium mines in Western Australia (Washington) to the South Korean producer Posco for $765 million as part of a binding agreement.
The deal does not include mining in the Ministry of Natural Resources, the inactive Bald Hill mine or exploration work in the Goldfields area of Washington, the company told investors during a telephone conversation today. This must be approved by the Australian regulatory body, the Foreign Investment Review Board, which authorizes overseas purchases.
According to Minres, Posco will also sign an agreement to acquire a 30% stake of MinRes in the production of spodumene in Wodgina and Mount Marion. The South Korean producer expects to eventually receive 270,000 tons of spodumene per year as part of the deal, according to a November 12 statement.
The Australian producer plans to ship 380,000-420,000 tons of spodumene from two mines on a shared basis during the 2025-26 fiscal year until June 30. The company currently operates 50:50 Wodgina and Mount Marion joint ventures with American manufacturer Albemarle and Chinese manufacturer Jiangxi Ganfeng Lithium, respectively. Albemarle and Jiangxi Gangfeng will retain their shares in two projects.
Minres and Posco have worked together before. Posco, American investor AMCI and Chinese steel manufacturer Baosteel jointly own a 43% stake in the MinRes Onslow pig iron project with a capacity of 35 million tons per year, the capacity of which was increased in August-October.
Posco also has a partnership with the Australian lithium producer PLS, formerly known as Pilbara Minerals. It operates a lithium hydroxide plant with a capacity of 43,000 tons per year in Gwangyang jointly with the Australian miner company.
But the plant is facing difficulties. The US government's cancellation of subsidies for electric vehicles in September under the Inflation Reduction Act has reduced demand for batteries and chemicals for them, PLS reported on October 24.
The company does not plan to launch the plant at full capacity until demand for lithium hydroxide increases, Posco said in August.
