Mineral Resources (MinRes) has abandoned the McIntosh graphite joint venture with Hexagon Resources.
The Perth-based mining services provider notified Hexagon this week that it would be terminating its role in the joint venture on October 31.
All McIntosh tenements, covering the northern Western Australian project, will be 100 per cent reverted to Hexagon.
Hexagon intends to continue its evaluation work in preparation for the rebalancing of the graphite concentrate supply and demand situation forecast, occurring in three to four years’ time.
The McIntosh project is a large-scale, high-quality flake graphite deposit based in the Kimberley region of Western Australia.
MinRes originally entered into the McIntosh project to increase its exposure to graphite and other battery materials and to create further contracting opportunities within Western Australia.
However, MinRes stated further investment in the project would not meet its minimum investment return threshold regarding its other significant projects.
MinRes will write off its investment in the McIntosh joint venture of less than $5 million this financial year.