MinRes, POSCO sign binding deal for lithium partnership

Mineral Resources (MinRes) and POSCO Holdings person signed a binding statement to signifier a lithium associated task (JV) partnership.

Under the deal, POSCO Holdings is acceptable to get a 30% involvement successful MinRes’ operational lithium business.

This statement volition spot the recently formed incorporated JV clasp MinRes’ existing 50% ownership of the Wodgina and Mt Marion lithium mines.

POSCO Holdings volition wage an upfront currency information of $765m (Won1.12tn) for its 30% involvement successful the JV, equivalent to an indirect 15% involvement successful each of the Wodgina and Mt Marion mines.

MinRes volition clasp a 70% involvement successful the caller entity, representing a 35% underlying involvement successful each mine.

The transaction values MinRes’ existing 50% involvement successful some Wodgina and Mt Marion astatine astir $3.9bn.

MinRes volition proceed to run some mines nether existing agreements with its JV partners, Albemarle astatine Wodgina and Jiangxi Ganfeng Lithium astatine Mt Marion.

The operating entities of MinRes volition stay extracurricular the caller incorporated JV and volition not beryllium portion of this transaction.

As portion of its investment, POSCO Holdings volition person spodumene ore proportional to its 30% interest.

POSCO Holdings CEO In Hwa Chang said: “We are committed to securing a stable, cost-competitive proviso of earthy materials to heighten our semipermanent competitiveness. We worth strong, dependable partnerships, and Mineral Resources has consistently demonstrated the operational excellence and semipermanent imaginativeness we seek. Wodgina and Mt Marion are high-quality assets with proven scale, susceptible of sustaining our concern for decades to come.

“Through this partnership, we volition harvester POSCO’s downstream expertise with MinRes’ mining capableness to thrust the sustainable maturation of the vigor materials manufacture and lend to the planetary modulation toward eco-friendly mobility.”

The collaboration aims to further fortify the presumption of Wodgina and Mt Marion successful gathering the rising request for Australian lithium.

Both assets are recognised arsenic Tier 1 operations with important imaginable for expansion.

The collaboration besides builds connected the existing narration betwixt MinRes and POSCO, established via the Onslow Iron JV.

The binding woody is taxable to the execution of long-form documents and customary conditions precedent, including regulatory approvals from bodies specified arsenic the Foreign Investment Review Board and immoderate required merger clearances.

MinRes anticipates that the transaction volition adjacent successful the archetypal fractional of 2026.

Upon receiving the proceeds, the institution plans to repay outer debt, fortify its equilibrium expanse and enactment the company’s adjacent signifier of growth.