What did Mineral Resources (ASX:MIN) and Ganfeng Lithium announce regarding the Mt. Marion operation?

Mineral Resources (ASX:MIN) and its joint venture partner, Ganfeng Lithium Group, have approved a joint A$490 million (US$352 million) investment for the Mt. Marion lithium project in Western Australia.

Why are Mineral Resources (ASX:MIN) and Ganfeng shifting to underground mining at Mt. Marion?

The joint venture is moving underground to tap into higher-grade lithium ore located directly beneath the existing open pit. Combining underground extraction with advanced flotation processing technology will significantly increase overall plant recoveries.

What is the capex schedule for the Mt. Marion lithium project expansion?

The approved A$490 million capital expenditure (capex) will be deployed across the 2027 and 2028 fiscal years. Because this is a brownfield expansion within an already operating mine site, the infrastructure spend is highly targeted.

What is the estimated financial payback period for the Mineral Resources (ASX:MIN) expansion?

Mineral Resources confirmed that the financial payback period for the A$490 million investment is estimated at less than one year based on current spodumene prices. This rapid return on capital underscores the highly lucrative, high-margin nature of accessing the deeper, higher-grade ore body.

Image for illustrative purposes only. Not a real photo.

MinRes, Ganfeng approve $490M Mt. Marion expansion

Q: What product change will result from the Mt. Marion expansion?

The upgrades will allow the Mt. Marion operation to streamline its processing output into a single, high-value 5% spodumene concentrate product. Previously, the plant produced multiple grades of lithium concentrate.

Written by Isaac FrancisPublished May. 25 2026Last Updated May. 25 2026

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.