Article courtesy of Energy News Bulletin.
Mineral Resources has completed selling its gas exploration permits EP 368 and 426 to Gina Rinehart’s Hancock Prospecting for an initial consideration of $780 million, cementing a strategic partnership between two of Australia’s most prominent mining magnates.
In addition to the outright sale, MinRes and Hancock Prospecting have formed a joint venture agreement to equally share exploration activities over MinRes’ remaining permits in the Perth and Carnarvon basins.
This arrangement includes Hancock’s acquisition of a 50% stake in the MinRes Explorer drill rig and associated infrastructure for $24 million, with completion expected in the first quarter of 2025.
A potential price adjustment of up to $327 million is contingent on achieving specific resource thresholds and classifications at the Moriarty Deep Prospect, Lockyer Gas, and Erregulla Oil discoveries.
Moriarty is currently undergoing definition drilling in the Perth Basin, while further drilling at Lockyer-6 is slated for the 2025 financial year, with expectations that these assets could further bolster Hancock’s growing energy portfolio.
This transaction comes as MinRes’ Managing Director, Chris Ellison, grapples with mounting corporate challenges, including declining lithium prices, high debt levels, and investor dissatisfaction over the company’s performance.
The sale of these gas assets—reportedly to Ellison’s long-time friend Gina Rinehart—has drawn scrutiny over their timing and potential undervaluation, though it provides immediate liquidity to MinRes.
Ellison has faced significant pressure in recent months, with analysts questioning his ability to navigate the company’s diversification strategy and operational challenges.
The divestment of the gas permits marks a significant step in reshaping MinRes’ portfolio, though questions remain about whether the move will alleviate investor concerns or exacerbate them.
Hancock Prospecting, led by Rinehart, continues to expand its footprint in the energy sector, leveraging its financial clout to acquire strategic assets amid a global push toward energy transition.
