26/07/2019 - 14:39

Wodgina sale gets Chinese green light

26/07/2019 - 14:39

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Mineral Resources has secured Chinese regulatory approval for its $US1.15 billion Wodgina stake sale, and was the best performer among the ASX 200 today, despite the miner also releasing weak quarterly results.

Chris Ellison's MinRes shipped 15 per cent less of spodumene concentrate than the quarter prior.

Mineral Resources has secured Chinese regulatory approval for its $US1.15 billion Wodgina stake sale, and was the best performer among the ASX 200 today, despite the miner also releasing weak quarterly results.

The Chris Ellison-led MinRes said it had received unconditional approval from the China State Administration for Market Regulation to sell its 50 per cent stake in its Wodgina lithium project to Albemarle Corporation.

The China State Administration for Market Regulation assesses whether or not transactions will create a monopolistic behaviour among companies importing into China.

The transaction remains still requires further approvals, including from the Australian Foreign Investment Review Board.

In its quarterly results, it said construction of its three-stage Wodgina 750,000 dry tonnes per annum spodumene concentrate plant progressed during the quarter, with train one complete and first ore expected this quarter.

Additionally, the company said it shipped 81,000 tonnes of spodumene concentrate from its Mt Marion project for the June quarter, down 15 per cent from the March quarter.

However, MinRes noted that the proportion of higher-grade material shipped for the period was higher.

It comes just a day after Pilbara Minerals and Alita Resources revealed poor spodumene concentrate export figures.

MinRes also reported it shipped 3.3 million tonnes of iron ore during the June quarter, in line with the quarter prior.

Shares in the company were up 7.8 per cent to trade at $16.57 each at 3.25pm AEST.

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