Kid­man deals move Mt Hol­land plans for­ward

Kalgoorlie Miner - - MINE TALK - Josh Chiat

ASX-listed lithium hope­ful Kid­man Re­sources is a step closer to get­ting the back­ing it needs to de­velop the Mt Hol­land lithium mine in the Gold­fields with Chilean lithium gi­ant So­ciedad Quim­ica y Min­era de Chile.

Kid­man has fol­lowed an off­take agree­ment with Elon Musk’s US elec­tric ve­hi­cle com­pany Tesla with a two-year sup­ply deal that would send 15 per cent of its pro­duc­tion from a pro­posed Kwinana lithium re­fin­ery to Ja­panese in­dus­trial cor­po­ra­tion Mit­sui.

The deal will re­sult in a sup­ply agree­ment once prod­uct spec­i­fi­ca­tions are com­plete for its lithium hy­drox­ide, which will be pro­duced with SQM un­der the new Co­va­lent Lithium brand.

The Martin Dono­hue-led com­pany wants to con­tract 75 per cent of its early pro­duc­tion from the 45,000-tonne-a-year down­stream re­fin­ery to sup­port a de­ci­sion to mine.

A pre-fea­si­bil­ity study last month placed an al­most $1 bil­lion price tag on the de­vel­op­ment, but es­ti­mated it would gen­er­ate up to $US33.5 bil­lion in rev­enue over a nearly half-cen­tury life­span.

Kid­man re­quires $US300 mil­lion to un­der­pin its por­tion of the build costs for the Mt Hol­land mine, south of South­ern Cross, and the Kwinana lithium hy­drox­ide plant.

SQM came to help with an ini­tial debt fa­cil­ity of $US100 mil­lion, with a fur­ther $US10m com­mit­ted for fu­ture fea­si­bil­ity stud­ies and early joint ven­ture re­quire­ments.

Kid­man Re­sources shares closes nearly 10 per cent higher yes­ter­day at $1.52.

Pic­ture: Kid­man Re­sources

Ge­ol­o­gists in­spect the Mt Hol­land core farm.

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