Lithium price spurs MinRes to reboot Bald Hill mine

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 release on Monday.

“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.

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

Located 50 km southeast of Kambalda in the Goldfields region, the Bald Hill site hosts 17.2 million indicated tonnes grading 0.91% lithium oxide (Li₂O) and 40.9 million inferred tonnes at 0.95% Li₂O. It has a production capacity of approximately 165,000 dry tonnes of 5.1% spodumene concentrate a year, equivalent to 140,000 dry tonnes of benchmark spodumene concentrates (SC6).

July production

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 shipment from the Port of Esperance is expected in the first quarter of fiscal year 2027 (which begins July 1), 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.

The price of 99.5% lithium carbonate from China was $28,400 a tonne on Tuesday compared with $9,025 a year ago, according to the The Wall. St. Journal. 

Three mines

“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 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 in Mineral Resources gained 2.6% on Tuesday to close at A$65.74 apiece, valuing the company at A$13 billion (US$9.25 billion).

Ellison remains the miner’s largest shareholder with more than 10% even after he sold shares — his first since 2017 — in preparation to set up an investment firm.