Mineral Resources (MinRes) has finalised a binding asset and share sale agreement with the administrators of Resource Development Group (RDG).
The agreement transfers ownership of RDG’s assets, including the Lucky Bay garnet mine, to MinRes following creditor approval in September. The acquisition strengthens MinRes’ portfolio and adds another significant mineral project in Western Australia.
What is the Strategic Expansion into the Garnet Market?
Located 35 kilometres south of Kalbarri and 530 kilometres from Perth, the Lucky Bay mine has a production capacity of 130,000 tonnes per year. The garnet is exported globally through the ports of Fremantle and Geraldton, supplying customers in the United States, Middle East, and Europe.
The mine consists of the Menari and Menari North heavy mineral deposits, both situated in a coastal limestone belt known as the Tamala Limestone formation. This area is recognised for its rich garnet mineralisation and long-term production potential.
Strong Mineral Resource Base
The Menari deposit holds a measured resource of 32.3 million tonnes (Mt), containing 1.4 Mt of garnet. The Menari North deposit contains 438.8 Mt, with 16.2 Mt of contained garnet. These figures highlight the significant scale and longevity of the Lucky Bay operation within the Australian industrial minerals sector.
Renewable Energy Integration at Lucky Bay
The Lucky Bay site incorporates a wind farm with seven turbines and battery storage, providing power to the processing plant. This system helps reduce diesel use and lower carbon emissions, aligning with MinRes’ focus on sustainable and energy-efficient mining operations.
By combining renewable power with responsible mining practices, MinRes continues to demonstrate leadership in low-carbon mineral production across Western Australia.
MinRes Board’s Commitment to Shareholder Value
MinRes has confirmed that its board will now assess strategic options to maximise value from the newly acquired assets.
“The board and I sought to ensure that MinRes shareholders could realise some value from their investment, and that there were no perceived conflicts in our decisions of RDG’s future,” MinRes chair Malcolm Bundey said.
He added, “I want to thank RDG’s employees for continuing to operate safely and productively during this process.”
This acquisition reflects MinRes’ broader strategy to diversify its mineral portfolio, enhance shareholder returns, and strengthen its footprint within Western Australia’s mining sector.