Mineral Resources Limited (ASX: MIN) has announced that it is selling a 50% stake of the Wodgina Lithium Project to Albemarle Corporation for US$1.15 billion.

Mineral Resources is a mining and mining services business based in Adelaide. Together with its subsidiaries, the company provides a wide range of general mine services, contract crushing, infrastructure provision and recovery of base metals concentrate for export.

The Wodgina sale

Mineral Resources has an agreement with Albemarle to sell half of the Wodgina Project for US$1.15 billion and set up a 50:50 joint venture.

The new business will produce spodumene concentrate and lithium hydroxide. Albemarle will acquire a 50% interest of all mineral rights except iron ore, which will be kept by Mineral Resources.

Mineral Resources Managing Director Chris Ellison said:

I am confident that with MRL and Albemarle working together at Wodgina, we will produce and supply high quality, competitively priced lithium products into the market to meet increasing global requirements for these important energy storage products.”

AGM guidance

The company also held its AGM today and gave guidance in FY19 for EBITDA of $280 million to $320 million with Mining Services EBITDA of $240 million to $260 million. Click here to learn what EBITDA means.

The company also told investors that it would spend approximately $490 million on capital expenditure. The Mineral Resources share price was trading 22% higher Thursday morning according to Google Finance.

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