Mineral Resources Surges 20% Following FIRB Approval for Onslow Iron Deal

Highlights:

• Mineral Resources Limited (ASX: MIN) stock surged 20% to AU$36.43 following FIRB approval for the sale of a 49% stake in the Onslow Iron haul road.
• Morgan Stanley Infrastructure Partners acquired the stake for AU$1.3 billion, boosting Mineral Resources' liquidity for future investments in key sectors like lithium and iron ore.
• Positive market sentiment for lithium mining stocks also contributed to the stock rally, reflecting increased demand for materials vital to electric vehicle production.

Shares of Mineral Resources Limited (ASX: MIN) have skyrocketed by over 20%, trading at AU$36.43, after receiving approval from Australia's Foreign Investment Review Board (FIRB) for a key deal. The board approved the sale of a 49% interest in the company's Onslow Iron haul road to Morgan Stanley Infrastructure Partners for AU$1.3 billion.

This strategic sale is set to support the company's balance sheet, and the stock surge is further boosted by rising momentum in lithium mining stocks, reflecting positive market conditions. The approval follows the company's recent announcement of cost-cutting measures at its major lithium mining operations, which will affect a significant number of blue-collar workers.

The lithium sector is seeing renewed investor interest, making Mineral Resources a standout performer on the ASX amidst broader industry enthusiasm.

FIRB's Strategic Approval

The FIRB’s green light for the deal is seen as a vote of confidence in Australia's mining infrastructure. Mineral Resources plans to reinvest the funds, strengthening its core operations in iron ore and lithium, two key drivers of the energy transition.

Lithium Boom and Future Outlook

The broader rally in lithium stocks, driven by growing demand for electric vehicle batteries, has also played a part in the stock's performance. As global markets increasingly prioritize sustainability, companies like Mineral Resources stand to benefit from these sectoral tailwinds.

With this approval and continued investor optimism, Mineral Resources is well-positioned for future growth.

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