Mineral Resources Announces Transformation of Nickel Plant into Lithium Hub

In a strategic move to bolster its lithium processing capabilities, Mineral Resources (MinRes) has confirmed a $15 million acquisition of a nickel concentrator plant, previously owned by Poseidon Nickel. The initiative marks a significant pivot towards repurposing the facility into a lithium processing hub located in the Goldfields region.

Under the leadership of Chris Ellison, MinRes disclosed the agreement, emphasizing the plan to transform the Lake Johnston plant to process lithium from its adjacent Bald Hill and Mt Marion assets. This decision aligns with the current downturn in nickel prices, which has notably affected Poseidon Nickel's operations, including the postponement of its Black Swan nickel project.

The Lake Johnston plant, equipped with a flotation circuit, boasts a capacity of 1.5 million tonnes per annum. MinRes plans to convert this facility to handle lithium ore, leveraging the existing infrastructure which includes an airstrip, a 200-person camp, and extensive workshop and laboratory facilities. The site spans 86 square kilometers and encompasses one exploration license along with 10 mining leases.

This acquisition is set to fast-track MinRes's development timeline by approximately two years compared to new greenfields projects, while also offering considerable capital expenditure savings. Chris Ellison highlighted the opportunity as a key step towards establishing MinRes's third lithium processing hub in the Goldfields, marking the company's inaugural venture that includes flotation capacity for fines treatment.

"Bringing our spodumene production expertise to Lake Johnston offers the potential to support projects globally, in what is considered the most promising region for lithium," Ellison remarked.

As part of the agreement, Poseidon Nickel will maintain a stake in the project through a 0.75 percent royalty on lithium minerals and a 1.5 percent net smelter return on all other minerals and metals produced from the designated project tenements.