Mineral Resources (MinRes) has not been shy in voicing its desire to have a bigger downstream presence in lithium, which has now come to fruition with a $US660 million ($969 million) investment in China.
The company announced this week that it had entered into an agreement with its MARBL joint venture partner Albemarle Corporation regarding two separate transactions.
One formalises a non-binding agreement established in February 2022, whereby MinRes will increase its stake in the Wodgina lithium mine from 40 per cent to 50 per cent, with Albemarle’s interest lessening to 50 per cent.
In return, Albemarle will increase its share in the first two trains of the Kemerton lithium hydroxide plant from 60 per cent to 85 per cent, with MinRes’ stake reducing to 15 per cent.
Such proposals are subject to Albemarle obtaining approval from the Foreign Investment Review Board (FIRB) for the Kemerton interest change, and both parties gaining Western Australia Government approval for the Wodgina interest change.
Subject to its own regulatory approvals, the second transaction would see MinRes acquire a 50 per cent interest in Albemarle’s 100 per cent owned Qinzhou and Meishan lithium conversion plants in China.
With a production capacity of 25,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE) product, Qinzhou currently produces both lithium carbonate and lithium hydroxide. The plant is expected to commence conversion of Wodgina spodumene concentrate in early 2024.
The Meishan plant is under construction and is expected to support the production of 50,000tpa of lithium hydroxide, with commissioning set to commence by the end of 2024.
“We are delighted to have reached these binding agreements, which cement MinRes’ place as a world-leader in lithium mining and leverage our partner Albemarle’s strong track record in battery chemical production,” MinRes managing director Chris Ellison said.
“We’ve always been committed to giving back to the local community, including by working in partnership with the Traditional Owners of the land on which we operate to deliver long-lasting and sustainable benefits. We also continue to study options to invest in capacity for future downstream lithium production in Australia.
“By growing our battery chemicals business and expanding into global chemical marketing, MinRes will become one of the world’s largest fully integrated lithium chemical suppliers to auto manufacturers, capitalising on the increasing demand for sustainable battery mineral products.”
Albemarle chief executive officer Kent Masters said the MARBL restructure positioned the company strongly going forward.
“Our Australian lithium assets are core to Albemarle’s strategy to build a globally diversified portfolio of best-in-class assets and resources,” he said.
“Inherent to that strategy is managing our global portfolio to maximize growth optionality and maintain a leading position in a dynamic, growing market. Our restructured MARBL joint venture enables each partner to deliver long-term value to our customers.”
Read through the full announcement here.
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