MinRes Shuts Lucky Bay Garnet Mine: 110 Jobs Lost as Kalbarri Braces for Economic Blow

Mineral Resources has confirmed it will shutter its Lucky Bay garnet mine near Kalbarri from July 1, cutting 110 jobs and dealing a significant economic blow to the small coastal community. The Silicon Review examines how a perfect storm of Middle East conflict, rising diesel costs, and falling demand has claimed another Australian mine.

A small coastal community in Western Australia is bracing for shock. Mineral Resources has confirmed it will close its Lucky Bay garnet mine near Kalbarri, about 600 kilometres north of Perth, from July 1, putting 110 jobs on the line.

The Chris Ellison-led company cited increased diesel costs and the ongoing conflict in the Middle East as the primary reasons. A "strategic review" found it was in MinRes's best interests to put the mine into care and maintenance.

Garnet is a hard mineral primarily used as an industrial abrasive. The Middle East represents a significant portion of Lucky Bay's sales, and the conflict has crippled demand.

"It will have an immediate effect on the individuals, but those employees would have families as well, so it is likely to have a very significant short-term impact," said Shire of Northampton chief executive Andrew Campbell. "The flow-on effects of that in terms of the retail and commercial sector are likely to be quite huge."

The closure comes less than a year after MinRes acquired the Lucky Bay garnet operation from the administrators of Resource Development Group. The company will declare a $40 million loss in its upcoming accounts.

MinRes said it would offer redeployment opportunities to impacted employees and would "assess all options for Lucky Bay's future, including a potential divestment.”

Kalbarri, a town of just over 2,000 people, is reeling. MinRes was the biggest single employer in the community alongside another nearby garnet operation.

Here is the question this closure raises. A mine bought from administrators less than a year ago. A $40 million loss declared. A community of 2,000 losing its biggest employer. When a project can go from acquisition to closure in under 12 months, what does that say about the due diligence? And when the Middle East conflict is cited as the cause, is it the conflict itself or the reliance on a single volatile market?

As MinRes shuts its Lucky Bay garnet mine and 110 jobs are lost, The Silicon Review asks a final question. When a mine closes and a community loses its biggest employer, is that just the cycle of mining or a warning that Australia's resources sector is more fragile than anyone wants to admit?

FAQ:

Q: Why is Mineral Resources closing the Lucky Bay garnet mine?
A: The Company cited increased diesel costs and the ongoing conflict in the Middle East, which represents a significant portion of Lucky Bay's sales, as the primary reasons for the closure.

Q: How many jobs will be lost?
A: 110 jobs will be cut, making MinRes's Lucky Bay mine the biggest single employer in the Kalbarri community alongside another nearby operation.

Q: When will the mine close?
A: The mine will be put into care and maintenance from July 1, 2026.

Q: What is garnet used for?
A: Garnet is a hard mineral primarily used as an industrial abrasive.

Q: How much will the closures cost MinRes?
A: The Company will declare a $40 million loss in its upcoming accounts.

Q: Is there any chance the mine will reopen?
A: MinRes said it will "assess all options for Lucky Bay's future, including a potential divestment."