MinRes updates lithium reserve figures as it mulls spin off
The West Australian company has been considering capitalising on the demand for the resources by spinning off the division and listing it in New York.
Mineral Resources has split out an updated lithium reserves number for two West Australian mines as it mulls a potential spin off on the New York Stock Exchange.
In an investor update, MinRes said it had reserves of 164 million tonnes at its Wodgina and Mt Marion mines and more than 310 million tonnes of mineral resources.
That would place its reserves slightly ahead of Pilbara Minerals, which said in October 2021 that its Pilgangoora project had 162 million tonnes and mineral resources of some 309 million tonnes.
“The high quality and scale of these Tier 1 assets in Western Australia underpin MinRes’ position as a leading global lithium producer,” said MinRes managing director Chris Ellison.
“We are ideally placed to continue the major expansions at both projects to ramp up spodumene concentrate output for lithium hydroxide conversion for many decades to come.”
“Significant opportunity exists to further expand the mineral endowment at both operations through near mine exploration activities
The Mt Marion project is half owned by MinRes and half owned by Jiangxi Ganfeng Lithium.
Credit Suisse analysts, in September, told clients that a MinRes lithium spin-off could equal the entire valuation of its existing mining operations. The West Australian miner restructured its business this year into mining services, iron ore, energy and lithium but may be able to cash in with prices of the raw material shooting up as demand grows for batteries, especially in electric vehicles.
MinRes is working with JP Morgan on the proposed plan with the investment bank previously handling two major US bond deals for the miner earlier this year and back in 2020.
Last week, The Australian’s DataRoom column reported the company had bolstered its lithium executive team, poaching the former head of Fortescue’s Pilbara iron ore operations, Fernando Pereira, as the division’s chief operating officer. MinRes is also believed to be close to appointing another key lithium executive to oversee the company’s plans.
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