Albemarle to acquire 50pc of Wodgina
MINERAL Resources (MinRes) has agreed to sell a half-share in its Wodgina lithium project to US group Ablemarle Corporation for $US1.15 billion.
Under the deal, Albemarle would acquire a 50 per cent interest in all mineral rights within the Wodgina tenements other than iron ore (which will be retained exclusively by MinRes) and tantalum (which remain held by Global Advanced Metals Greenbushes), as well as all fixed infrastructure and utility assets, the spodumene concentrate plant and the mobile mining equipment.
The two companies would form a 50:50 Joint venture (JV), which would include a jointly funded, designed, built and operated lithium hydroxide plant.
The Wodgina project was expected to produce up to 750,000tpa of 6 per cent spodumene, which would be used as feedstock for the plant once constructed.
The first stage was expected to produce at least 50,000tpa of battery grade lithium hydroxide and the second stage was expected to convert the remaining volume of spodumene concentrate to battery grade lithium hydroxide — with expected production at about 100,000tpa.
MinRes managing director Chris Ellison said there was an extremely good fit between the corporate cultures and skillsets of both businesses.
“Our proven local Western Australian capability is extremely well complemented by Albemarle’s proven technical downstream processing expertise and their international marketing capabilities in lithium and other energy storage minerals,” Mr Ellison said.
“Our organisations share the same vision to develop Wodgina, a tier one asset, as a world class, 30-plus year integrated lithium operation together.
“I am confident that with MRL and Albemarle working together at Wodgina, we will produce and supply high-quality, competitively priced lithium products into the market to meet increasing global requirements for these important energy storage products.”