Leading Australian mining services provider Mineral Resources (ASX: MIN) has called time on the McIntosh graphite joint venture after notifying Hexagon Resources it was exiting the deal with effect from 31 October. The McIntosh tenements, south of Kununurra in Western Australia’s Kimberley region, will revert 100% to Hexagon. MinRes entered into the McIntosh JV in March 2018 to increase its exposure to the battery materials sector.
Mineral Resources (ASX: MIN) has notified Hexagon Resources that it is withdrawing from the McIntosh Joint Venture (MJV) terminating the MJV with effect from 31 October 2019. The MJV tenements, covering the McIntosh project in northern Western Australia, will now revert 100% to Hexagon.
MinRes originally entered into the MJV to increase its exposure to battery materials with the inclusion of graphite, as well as to create additional WA contracting opportunities.
However, MinRes has determined that any future investment in the McIntosh project will not meet its minimum investment return threshold set with regard to its other significant planned projects requiring development capital. MinRes will write off its investment in the MJV of less than $5 million this financial year.