Mineral Resources and its joint venture partner Jiangxi Ganfeng Lithium Co have announced a $490 million investment to transition the Mt Marion lithium mine in Western Australia from open-pit to underground operations. The move is expected to significantly extend the mine's life and boost production capacity.
Transition to Underground Mining
The Mt Marion mine, located near Kalgoorlie, has been a major source of lithium spodumene concentrate since 2017. The transition to underground mining will allow access to higher-grade ore at depth, improving the project's economics. The investment includes development of declines, underground infrastructure, and processing plant upgrades.
Production and Economic Impact
The underground operation is expected to start production in the first half of 2025, with a target of 1.5 million tonnes per annum of ore. This will sustain production of approximately 300,000 tonnes of spodumene concentrate annually. The project is expected to create hundreds of jobs during construction and operation.
Mineral Resources managing director Chris Ellison said the investment underscores the company's commitment to the lithium sector. "This is a significant milestone for Mt Marion and demonstrates our confidence in the long-term demand for lithium," he said.
Joint Venture Details
Mineral Resources holds a 50% stake in the Mt Marion joint venture, with Ganfeng holding the remaining 50%. The partners have approved the capital expenditure, with funding to come from existing cash reserves and debt facilities. The project is expected to have a mine life of at least 10 years from the start of underground operations.
The announcement comes amid strong global demand for lithium, driven by the electric vehicle battery market. Australia is the world's largest producer of lithium, with Western Australia hosting several major mines.
