Sale of Stake: Australia's Mineral Resources has agreed to sell a 30% stake in its lithium business to South Korea's Posco Holding for A$1.2 billion (~US$765 million), forming a new joint venture.
Joint Venture Details: The new entity will include MinRes' 50% ownership in the Wodgina and Mt Marion lithium mines, giving Posco an indirect 15% interest in each project while MinRes remains the operator.
Spodumene Concentrate: Posco will receive spodumene concentrate proportional to its stakes, aiding its plans for new downstream processing facilities.
Industry Significance: This investment marks a significant milestone for the Australian lithium industry, reflecting the growing global demand for high-quality lithium assets and international confidence in Australia's capabilities.
Posco Holdings Inc, formerly Posco, is a Korea-based company principally engaged in the manufacture and distribution of steel products. The Company operates its business through four segments. The Steel segment produces and sells steel products such as hot rolled steel, cold rolled steel, stainless steel, among others. The Trading segment engages in the global trade, including the export and import of steel products. The Engineering and Construction (E&C) segment plans, designs and builds industrial plants, civil engineering projects, commercial and residential buildings. The Other segment is engaged in the power plants, information and communication related services and other businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
