Mineral Resources Ceases Operations at its Lucky Bay Mine

Mineral Resources Limited (MIN) is involved in integrated supply of goods and services to the resources sector with a market capitalisation of $13.01B.

Mineral Resources Limited (ASX: MIN)

Mineral Resources Limited (ASX: MIN), on 25 June 2026, announced an update on the Lucky Bay Project. It reported that the mine's financial performance has been significantly affected by continued conflict in the Middle East, a region which accounts for a major proportion of Lucky Bay’s sales. Combined with significantly higher shipping costs and diesel, Lucky Bay has decided, a strategic review in consideration of the best interests of the company and its shareholders to discontinue operations and move the project into care and maintenance, effective from 1 July 2026.  

The decision to discontinue operations will affect around 110 employees, who will be assisted by Mineral Resources Ltd. They will be provided opportunities for redeployment across the company's other operations, where suitable.

The company also announced that Mineral Resources Ltd and its joint venture partner Jiangxi Ganfeng Lithium Co. Ltd (Ganfeng) have reached a Final Investment Decision (FID) to develop underground mining and construct a flotation plant at the Mt Marion lithium operation. Existing operations are expected to experience limited disruption during the construction and commissioning phases.

The total capital investment for underground mining and a flotation plant at the Mt Marion lithium operation is estimated at $490 million on a 100% basis, which is to be invested across FY27 and FY28.This includes a flotation plant ($240 million), underground pre-production development ($220 million), and non-processing infrastructure ($30 million).

On 30 April 2026, Mineral Resources Ltd announced its quarterly report, that highlighted a strong liquidity position of $1.8 billion as at 31 March 2026. Capital expenditure during the quarter amounted to approximately $240 million. Net debt decreased to approximately $4.5 billion.

Outlook:

The company is currently undertaking a tender process for an underground mining contractor, with central underground development expected to begin in Q1 FY27. From FY28 onwards, Mt Marion is expected to operate as an integrated open-pit and underground mine, with ore sourced from underground open stoping contributing up to 40% of the processing feed. The integration of a flotation plant with underground mining is expected to extend the mine life by unlocking additional mineral resources beneath the existing open pit. It is also expected to enhance plant recovery to around 70%, increase installed capacity from approximately 500 ktpa SC6 to 600 ktpa SC6, and eliminate the lower-grade SC3.5 product, enabling the production of a single SC5 product.

(Source: Company Announcements)