Kidman sells half of lithium mine

KIDMAN Resources has sold a half stake in a lithium project in Western Australia to a Chilean company in a deal worth $91.5 million.

The deal — with Socieded Quimica y Minera, or SQM — will help pay for development of the Earl Grey lithium deposit at Mt Holland, in the state’s south.

It is conditional on approval from the Foreign Investment Review Board and comes with a $28 million loan to Kidman until it is finished.

The money will be directed to finishing feasibility studies, developing the mine and plant and studying a refinery.

“The project characteristics, coupled with our expertise in lithium production and the lithium market will make this project a great addition to our production portfolio,” SQM chief Patricio De Solminihac said.

It was good to see a Chilean company investing in Austra- lia after many Australian mining companies had invested in Chile, he said.

Kidman managing director Martin Donohue said Earl Grey had attracted significant interest globally.

“The decision to sign the binding letter agreement with SQM was justified by its unmatched expertise in the lithium business,” he said.

“They are the world’s largest producer, with a depth of technical and marketing expertise that will benefit the joint venture.”

The pair are aiming to produce 40,000 tonnes a year of lithium carbonate equivalent at Mt Holland from 2021.

They said the deal was conditional on other third-party approvals. – The Australian

The decision ... was justified by SQM’s unmatched expertise in the lithium business