(Reuters) -Australia’s Mineral Resources will sell a 30% stake in its operational lithium business to South Korea’s POSCO Holdings for $765 million after placing it under a new joint venture, the miner said on Wednesday.
The new entity will hold MinRes’ 50% ownership in the Wodgina and Mt Marion lithium mines, giving POSCO an indirect 15% interest in each of the projects.
MinRes will remain the mines’ operator under its existing agreements with the respective partners.
POSCO will receive spodumene concentrate in proportion to its 30% interest, supporting its plans for new downstream processing facilities.
MinRes said the partnership builds on their existing Onslow Iron JV and will help meet rising demand for Australian lithium.
The Wodgina and Mt Marion mines are among the most significant in Western Australia. Wodgina, one of the world’s largest hard-rock lithium deposits, is operated in partnership with Albemarle. China’s Ganfeng Lithium is the partner for Mt Marion.
The deal, approved by both boards, is subject to regulatory clearances including Australia’s Foreign Investment Review Board.
(Reporting by Rajasik Mukherjee; Editing by Sriraj Kalluvila)
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