Mineral Resources (MinRes) and its partner Jiangxi Ganfeng Lithium have approved the final investment decision (FID) to undertake a strategic expansion at the Mt Marion lithium mine in Western Australia. The project includes a new flotation plant and the development of underground mining to increase spodumene recovery and extend the mine’s life.
The total investment amounts to $490 million on a 100% basis and will be distributed between fiscal years 2027 and 2028. Of the total amount, $240 million will be allocated to the flotation plant, $220 million to underground pre-production development, and $30 million to complementary infrastructure.
Mt Marion will increase capacity and lithium recovery
With this expansion, Mt Marion will evolve into a hybrid operation combining open-pit and underground mining. According to MinRes, ore from the underground system will supply up to 40% of the processing plant’s feed starting in fiscal year 2028.
The company also aims to increase plant recovery to approximately 70% and boost installed capacity from around 500 ktpa SC6 to 600 ktpa SC6. The project will also eliminate the lower-quality SC3.5 concentrate, allowing for the exclusive production of SC5.
The new flotation plant will be located next to the existing dense media separation circuit; its function will be to recover fine spodumene that currently ends up in the tailings, improving the overall efficiency of lithium processing.
Underground development will begin in 2027
The bidding process to select the underground mining contractor is already underway. MinRes plans to begin development of the central underground zone during the first quarter of fiscal year 2027.
Furthermore, construction of the flotation circuit will begin during the same period and will be carried out by MinRes’ Mining Services division. Commissioning and the gradual increase in production are scheduled for the second half of fiscal year 2028.
The company indicated that operational disruptions will be minimal during construction; in addition, the site’s camp will be expanded from 500 to 750 rooms to meet the needs of both projects.
MinRes is committed to high-grade ore and greater profitability
MinRes CEO Chris Ellison highlighted that the investment will allow access to high-grade ore at depth and strengthen Mt Marion’s competitiveness within the global lithium market.
According to the company, the estimated investment recovery period would be less than one year considering current prices for spodumene SC6 of around US$2,700 per ton.
The expansion seeks to reinforce Mt Marion’s image as one of the relevant assets for the supply of lithium used in batteries and energy storage technologies.
Source and photo: Mineralresources