Mineral Resources to Establish Lithium Processing Hub at Lake Johnston
Mineral Resources has finalized a Binding Heads of Agreement with Poseidon Nickel to purchase the Lake Johnston nickel concentrator plant and its associated land. The company plans to transform Lake Johnston into a key lithium processing hub in the southern Goldfields region, aligning with its strategy to enhance lithium processing capabilities.
This acquisition enables Mineral Resources to process fines from its Bald Hill and Mt Marion lithium operations, alongside new regional discoveries and third-party ore, in exchange for project equity. The nickel concentrator plant, which includes a flotation circuit with a capacity of 1.5 million tonnes per annum, is adaptable for treating lithium ores. The facility is equipped with an active groundwater extraction license and is licensed to operate until 2041. Additionally, it boasts significant on-site infrastructure, including an airstrip, 200-person accommodation camp, electrical systems, workshops, and laboratories.
Internal evaluations suggest that repurposing the brownfield site at Lake Johnston could shorten approval timelines by approximately two years compared to new developments, while also offering substantial cost savings. Situated about 185 kilometers southwest of Kalgoorlie, the acquired property spans 86 square kilometers and includes one exploration license along with 10 mining leases, all of which will be wholly owned by Mineral Resources, inclusive of all mineral rights.
The financial aspects of the deal involve an initial payment of $1 million upon agreement execution, followed by $6.5 million upon completing the Sale and Purchase Agreement, and a final $7.5 million payment 12 months thereafter. The completion of this transaction is contingent upon several conditions, including satisfactory legal due diligence of the assets, the assignment of third-party agreements to Mineral Resources' satisfaction, and the acquisition of consent from the Minister for Mines and Petroleum for the transfer of rights and obligations related to the tenements.
Chris Ellison, Managing Director of Mineral Resources, expressed enthusiasm about the project, stating, "This is an exciting opportunity to develop Mineral Resources' third lithium processing hub in the Goldfields and the first to include flotation capacity to treat fines." Ellison emphasized the company's intent to apply its spodumene production expertise to Lake Johnston, potentially making it a global service hub for lithium projects in one of the world's most lithium-rich regions.
