Mineral Resources (MRL) and Albemarle Corporation have entered into a non-binding letter agreement regarding the potential expansion of the MARBL lithium joint venture (JV).
The MARBL JV was formed in November 2019 and involves the development of the Wodgina lithium mine and operation of the Kemerton lithium hydroxide conversion assets, both in Western Australia. MARBL hopes to restart Wodgina operations in the third quarter of 2022.
As part of the proposed expansion, Wodgina would be owned 50:50 by MRL and Albemarle. Previously, the mine had been split 60:40 between the two companies with Albemarle owning the primary interest.
The expansion will also see MRL and Albemarle enter a new 50:50 JV, whereby the two companies will equally fund additional lithium conversion assets outside of Australia. Albemarle would be the operator of these assets.
MRL will resume management of the Wodgina mine, while the 60:40 ownership of Kemerton trains 1 and 2 won’t change.
Albemarle will also continue as the exclusive marketer of lithium products produced from the joint venture.
MRL managing director Chris Ellison says the proposed expansion is an important advancement in the company’s partnership with Albemarle.
“We are delighted to have reached this non-binding agreement, which represents a practical solution to support the growth of our partnership with Albemarle,” he said.
“MRL’s core competency is to design, build and operate the Wodgina site. Albemarle has a strong track record in the development and operation of downstream lithium conversion, and has an industry-leading sales and marketing capability.
“Once finalised, this arrangement will build on our strong partnership with Albemarle to generate sustainable, long-term value from our world-class assets and capitalise on growing global lithium demand.”
The principles and transactions of the expansion and any flow-on agreements that come from it, are subject to due diligence. It is hoped this will be completed within the next three months.
MRL has also announced it has taken control of its 51 per cent share of the spodumene concentrate offtake from the Mt Marion operation in WA.
The company has entered into an agreement which will see its share of Mt Marion spodumene be converted into lithium hydroxide by Ganfeng Lithium Co in China.
The agreement has an initial seven-month term with the option to extend. MRL expects first lithium hydroxide sales in May 2022.
The Tier 1 miner is also investigating ways to increase Mt Marion’s spodumene production by 10 to 15 per cent.