News: POS UPDATE 1-Australia's MinRes to develop a lithium processing hub in goldfields region

(Recasts throughout with details and background)

March 18 (Reuters) - Australia's Mineral Resources (MIN) on Monday said it intends to develop a lithium processing hub in Goldfields region of Western Australia via acquisition of the Lake Johnston nickel concentrator plant and tenure from Poseidon Nickel (POS) .

"The acquisition aligns with the strategy to process fines from the Company’s Bald Hill and Mt Marion lithium operations, new discoveries made by MinRes in the region and third-party ore in exchange for project equity," the diversified miner said.

This comes at a time when the Australian government is considering a

tax credit

for companies that build processing facilities to boost the value of green energy minerals such as nickel and lithium.

MinRes will pay A$1 million ($655,900)on execution of the acquisition agreement, A$6.5 million on completion of the deal and a further A$7.5 million, a year after the completion.

($1 = 1.5246 Australian dollars)