Mineral Resources to close Lucky Bay garnet mine
- Mineral Resources will shutter its Lucky Bay garnet mine in Western Australia.
- The company will record an impairment charge of roughly $40 million because of the closure.
- Ongoing Middle Eastern conflict has materially impacted financial performance by disrupting a core regional sales market.
Mineral Resources (ASX:MIN) announced that it will shutter its Lucky Bay garnet mine in Western Australia and record an asset impairment charge of roughly $40 million.
The company stated that the project has faced steep financial headwinds compared to initial operating targets due to prolonged geopolitical tensions.
"Financial performance has been materially impacted by ongoing conflict in the Middle East, a region representing a significant proportion of Lucky Bay's sales," the company stated in its operational update.
The facility will officially transition into a care and maintenance phase on July 1 to preserve the asset while management assesses strategic alternatives.
Following the announcement, the Mineral Resources share price was unchanged at $54.20.
The diversified miner originally acquired the industrial asset in September 2025 after its former owner, Resource Development Group, entered voluntary administration.
The company stated that it will assess all future options for the West Australian operation, including a potential outright sale of the asset to a third party.
