(Reuters) – Australia’s Mineral Resources on Monday said it intends to develop a lithium processing hub in Goldfields region of Western Australia via acquisition of the Lake Johnston nickel concentrator plant and tenure from Poseidon Nickel.
“The acquisition aligns with the strategy to process fines from the Company’s Bald Hill and Mt Marion lithium operations, new discoveries made by MinRes in the region and third-party ore in exchange for project equity,” the diversified miner said.
This comes at a time when the Australian government is considering a tax credit for companies that build processing facilities to boost the value of green energy minerals such as nickel and lithium.
MinRes will pay A$1 million ($655,900)on execution of the acquisition agreement, A$6.5 million on completion of the deal and a further A$7.5 million, a year after the completion.
($1 = 1.5246 Australian dollars)
(Reporting by Ayushman Ojha in Bengaluru; Editing by Chris Reese)
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