MinRes to lay off 110 workers after Australian Garnet hit by Middle East conflict

• Significant MinRes staff impact after review.
• The Middle East conflict has hit leading garnet customers, with high diesel and shipping prices impacting financials.
• Lucky Bay project to go into care and maintenance.

Mineral Resource (ASX:MIN) has this week elected to shut down its recently acquired Australian Garnet operation north of Perth after the project’s financial stability was impacted by the ongoing Middle East conflict.

Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.

A review of the Western Australian operation’s financial performance found it has been materially impacted by the conflict in the Middle East, a region representing a significant proportion of Lucky Bay’s sales.

Combined with materially higher diesel and shipping costs, the review of Lucky Bay has determined it is in the best interests of MinRes and its shareholders to cease operations and transition the project into care and maintenance, effective July 1.

“This decision will impact approximately 110 employees, who will be supported by MinRes and offered redeployment opportunities across the company’s other operations where suitable,” the company announced today.

MinRes acquired the Australian Garnet operation, located south of Kalbarri in WA, in September CY25 after execution of an asset and share sale agreement with the administrators of Resource Development Group.

MinRes told shareholders it will now assess all options for the project’s future, including a potential divestment. The company stated it will disclose any associated financial impacts in its FY26 Full Year results, including a non-cash impairment on its written down value of approximately $40 million.

Australian Garnet is a single-source operation, offering pure, unblended Australian garnet sand. The project features a total mineral resource tonnage of 523Mt, a heavy minerals total mineral resource of 21.7Mt, a garnet total mineral resource of 17.9 Mt, and a mineral resource mine life of 28 years.

MIN will open today at $65.94. Mkt cap $12.94B.

Join the discussion: See what HotCopper users are saying about Mineral Resources Ltd and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.