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The Mineral Resources Limited (ASX: MIN) share price has been a strong performer on Monday morning.
At the time of writing, the mining and mining services provider’s shares are up 4.5% to $41.20.
Why is the Mineral Resources share price charging higher?
Investors have been bidding the Mineral Resources share price higher today following the release of an announcement relating to the Wodgina Lithium Mine in the Pilbara region of Western Australia.
According to the release, the 40% owned MARBL Lithium Joint Venture (MARBL) with lithium giant Albemarle has decided to restart operations at the Wodgina Lithium Mine.
Wodgina, which has been on care and maintenance since November 2019, will be restarted to produce spodumene concentrate during the third quarter of 2022.
It will initially focus on restarting one of Wodgina’s three 250,000tpa processing lines. After which, when market demand is sufficient, additional processing lines may be recommenced to a total of 750,000tpa.
The start-up and initial operating phase at Wodgina is expected to create 200 new full-time jobs.
Mineral Resources’ Managing Director, Chris Ellison, was delighted with the news.
He said: “We are delighted that the MARBL JV has decided to restart Wodgina, a world-class lithium opportunity that MRL developed into a mine with world-class potential. It was the correct decision in late 2019 to place Wodgina on care and maintenance though it never dented our confidence in lithium’s long-term positive demand fundamentals. As we said at the time and repeat today, in Albemarle we have the best partner to deliver maximum and sustainable value from world-class assets like Wodgina.”
Mr Ellison appears very positive on the future, noting the company’s exposure to a number of long-life lithium operations.
“Lithium is one of MRL’s two core commodities, alongside iron ore, and we have worked very hard over the past five years to establish long life operations for both. Wodgina, along with our 50%-owned Mt Marion Lithium Project in WA’s Goldfields and the soon-to-be-completed 40%-owned Kemerton Hydroxide Facility, give MRL a world-class portfolio of highest-quality, long-life lithium assets in a Tier 1 mining jurisdiction,” he added.