MinRes reboots Bald Hill lithium mine after 18-month pause

Mineral Resources (ASX: MIN) is restarting its Bald Hill lithium mine in Western Australia after an 18-month hiatus, citing improved market conditions to support production.

The restart follows a significant and sustained recovery in lithium prices and reflects extensive planning undertaken over recent months to ensure the operation can be brought back online safely and efficiently, the Australian miner said in a press release on Monday.

In November 2024, MinRes placed the mine under care and maintenance in a move to preserve capital and protect the long-term value of the operation.

Located 50 km southeast of Kambalda in the Goldfields region, the Bald Hill site hosts a total mineral resource of over 58 million tonnes grading 0.9% lithium oxide (Li2O). It has a production capacity of approximately 165,000 dry metric tonnes (dmt) of 5.1% spodumene concentrate per annum, equivalent to 140,000 dmt of benchmark spodumene concentrates (SC6).

First production in July

Outlining its restart plans, MinRes said it expects to begin ramp-up activities soon, followed by crushing and mining operations next month, with first production of spodumene concentrate targeted for July. First from the Port of Esperance is expected in the first quarter of fiscal year 2027, with full production capacity anticipated in the second quarter, it added.

The restart comes after a recovery in lithium prices as the industry grapples with supply uncertainty from major producers, with China continuing to suspend mine operations and Zimbabwe banning raw mineral exports. So far this year, prices of lithium carbonates have surged more than 50% to break a multi-year downtrend in the battery metal.

“With strong and sustained demand for spodumene concentrate driving a significant recovery in prices, the time is right to restart operations at Bald Hill,” MinRes managing director Chris Ellison said in a statement.

“Once production resumes at Bald Hill, MinRes will be the only company globally operating three hard rock lithium mines, each with their own spodumene concentrate facilities,” he added.

The company currently operates the Wodgina lithium mine in the Pilbara region and the Mt Marion mine located 590 km east of Perth. The assets are both held under 50/50 joint ventures with Albemarle (NYSE: ALB) and Ganfeng Lithium, respectively.

Shares of Mineral Resources, however, slumped 1% in Australia amid weakness in the critical minerals mining sector. It also follows reports of Ellison’s sale of company shares — his first since 2017 — for what he called “personal financial reasons.”

The Perth-based lithium and iron ore miner has a market capitalization of A$12.7 billion ($9.1 billion).