MinRes, Ganfeng approve $490M Mt. Marion expansion

Mineral Resources (ASX:MIN) and China's Ganfeng Lithium Group approved a joint $490 million investment to construct a new flotation plant and develop underground mining infrastructure for the Mt Marion lithium operation.

The project is designed to tap into deeper, high-grade ore bodies located beneath the existing open-cut pit.

By combining underground mining with advanced flotation technology, the partners aim to significantly lift plant processing recoveries.

According to Mineral Resources Managing Director Chris Ellison, the upgrades will allow the operation to streamline its output into a single, high-value 5% spodumene concentrate product.

The capital expenditure is scheduled to be deployed across the 2027 and 2028 fiscal years.

Despite recent market fluctuations in the battery metals sector, Mineral Resources confirmed that the financial payback period for the expansion is estimated at less than a year based on current spodumene prices, underscoring the high-margin nature of the development.

The capital injection represents a critical milestone for the Western Australian lithium sector, securing the long-term viability of the asset.

"This high-return brownfield investment sets up Mt Marion for decades to come," Ellison stated, highlighting the project’s role in anchoring the company’s future production capacity.