In a major move to reinforce its financial standing, Australian mining company Mineral Resources has agreed to sell a significant portion of its Western Australian lithium operations to South Korean industrial giant POSCO. The transaction, valued at $1.2 billion, will see POSCO acquire a 30 per cent interest in MinRes's key lithium assets.
Deal Structure and Asset Details
The agreement stipulates that POSCO will take a 15 per cent stake in each of the Wodgina and Mt Marion lithium mines. This strategic sale was initiated by MinRes, led by Managing Director Chris Ellison, as part of a process to extract value from its portfolio and address its debt-laden balance sheet. Ellison stated that the substantial cash infusion from POSCO would materially strengthen the company's financial position and serves as a strong endorsement of the two hard rock lithium mines' potential.
Despite the change in ownership, Mineral Resources will continue to operate both the Wodgina and Mt Marion sites under their existing agreements. The company's operating entities will remain separate from the newly formed joint venture with POSCO.
Ownership Landscape and Broader Partnership
The ownership of these assets is complex. The Wodgina project is currently a 50-50 joint venture with US-based Albemarle. At Mt Marion, MinRes holds a 51 per cent controlling stake, with Chinese firm Ganfeng Lithium owning the remainder. It is important to note that MinRes retains full control of the currently idle Bald Hill mine, which is not part of this transaction.
This lithium deal builds upon an existing partnership between the two companies. POSCO and MinRes are already collaborating on the Onslow iron ore project, another of MinRes's ventures in Western Australia. The lithium transaction is scheduled for completion in the first half of 2026.
Strategic Implications and Market Context
Malcolm Bundey, who joined MinRes as part of its reputational rebuilding efforts, commented on the investment. He said it signals growing global demand for tier 1 hard rock lithium. Bundey emphasised that this deal continues the company's commitment to strengthening its finances and leveraging its core skills in building world-class assets and recycling capital for future growth.
The deal arrives as lithium prices, which have been under pressure due to market oversupply, have shown a slight recovery. According to the Shanghai Metals Exchange, the price touched $US975 a tonne recently, offering a glimmer of optimism for producers.
