Mineral Resources Ltd (ASX: MIN) shares are sinking today.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium miner and diversified resources producer closed yesterday trading for $65.86. In late morning trade on Thursday, shares are changing hands for $64.04 apiece, down 2.8%.
For some context, the ASX 200 is down 0.5% at this same time, while the S&P/ASX 200 Resource Index (ASX: XJR) is down 1.9%.
Despite today's retrace, the Mineral Resources share price remains up an impressive 217.5% over the last 12 months, smashing the 2.5% one-year gains posted by the benchmark index.
Now, here's what investors are mulling over today.
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Mineral Resources shares slip amid closure update
In an update this morning deemed non-price sensitive to Mineral Resources shares, the miner reported that it is preparing to mothball its Western Australia-based Lucky Bay Garnet Project at the end of June.
The ASX 200 miner acquired Lucky Bay in September 2025 following an Asset and Share Sale Agreement with the administrators of Resource Development Group.
Today, management reported that fallout from the Middle East conflict has driven up costs, leading to their decision to shutter operations.
Mineral Resources stated:
The mine's financial performance has been materially impacted by ongoing conflict in the Middle East, a region representing a significant proportion of Lucky Bay's sales.
Combined with materially higher diesel and shipping costs, a strategic review of Lucky Bay has determined it is in the best interests of the company and its shareholders to cease operations and transition the project into care and maintenance, effective 1 July 2026.
The closure will affect some 110 employees. The miner said they will be offered redeployment opportunities at other work sites where possible.
As for the financial impact on Mineral Resource shares, management said they will assess all future options for Lucky Bay. That includes a potential divestment of the garnet mine.
Mineral Resources expects to book a non-cash impairment on the written down value of Lucky Bay of approximately $40 million for FY 2026.
What else has been happening with the ASX 200 mining stock?
Among the tailwinds sending Mineral Resources shares soaring this past year is the rocketing lithium price.
On 18 May, this led the company to report that it was restarting operations at its Bald Hill lithium mine. The Western Australian lithium mine was placed in care and maintenance in November 2024 amid tumbling lithium prices at the time.
Commenting on the decision to restart Bald Hill, Mineral Resources managing director Chris Ellison said:
With strong and sustained demand for spodumene concentrate driving a significant recovery in prices, the time is right to restart operations at Bald Hill…
Once production resumes at Bald Hill, MinRes will be the only company globally operating three hard rock lithium mines, each with their own spodumene concentrate facilities.
