The Mineral Resources Ltd (ASX: MIN) share price is charging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) diversified resources producer closed yesterday trading for $72.06. In morning trade, shares were changing hands for $77.44 apiece, up 7.4%.
After some likely profit-taking, shares are currently trading for $75.95, up 5.4%.
Here’s what ASX 200 investors are considering.
What’s lifting the ASX 200 mining stock today?
The Mineral Resources share price is leaping higher after the company reported on amended terms of the transactions it signed with lithium giant Albemarle Corporation (NYSE: ALB) in February.
According to the release, the updated MARBL Joint Venture will simplify the commercial arrangements.
Mineral Resources’ share of the Wodgina lithium mine will increase to 50%. The ASX 200 miner will remain the operator of Wodgina. Albemarle will take full ownership of the Kemerton lithium hydroxide plant, which it currently operates.
The economic effective date for the revised transaction remains unchanged at 1 April 2022. Albemarle will pay Mineral Resources approximately US$380 to US$400 million.
The amended terms will no longer see Mineral Resources invest in any Chinese conversion assets with Albemarle. The ASX 200 miner also will not make any payments to Albemarle for joint downstream investments.
The company said it will enter a transitional tolling arrangement with Albemarle to convert Wodgina spodumene until 30 June 2024. This will enable the miner to continue to build its team in China before marketing its own share of Wodgina spodumene concentrate and lithium battery chemicals.
Mineral Resources will establish an office and warehouse in Ningbo, China.
Commenting on the amended terms sending the Mineral Resources share price higher today, Josh Thurlow, MinRes CEO Lithium, said:
These changes are a win-win for both parties, with MinRes and Albemarle remaining great joint venture partners in the world-class Wodgina lithium mine, while maximising flexibility to focus on the strengths of our businesses…
For MinRes, we’ve unlocked value from our non-integrated Kemerton processing facility, which will provide flexibility to continue expanding our hard rock assets and developing our own integrated lithium conversion assets in Australia and abroad.
The companies expect the arrangements to be completed in the December quarter. This remains subject to approval from the Foreign Investment Review Board (FIRB).
Mineral Resources share price snapshot
The Mineral Resources share price has been a stellar performer over the past 12 months, gaining 59%.
