Joint venture (JV) partners Kidman Resources and Sociedad Quimica y Minera de Chile (SQM) have confirmed their commitment to the Mt Holland lithium project, in Western Australia, despite a recommendation that Kidman’s request to be exempt from minimum expenditure obligations over certain tenements be refused.

The recommendation last week from the Perth mining warden to Mines Minister Bill Johnston has put a question mark over whether Kidman will have the right to develop the tenements, which it bought for $3.5-million in early 2016.

Kidman pointed out on Monday that the recommendation was not binding and that Johnson would have to make a final decision on the matter.

The company disagrees with the recommendation on a number of points and said that there were “compelling reasons” why the Minister should exercise his power to grant exemptions, clearing the way for the Mt Holland project to be progressed.

The project has been granted lead agency status as a project of significance to Western Australia, which is seeking to establish a global lithium province in the state. Kidman and SQM have so far invested more than $55-million in the Mt Holland project, which is expected to directly create more than 350 jobs by 2021, plus additional jobs through the construction phase.

“SQM is firmly committed to the Mt Holland lithium JV with Kidman, including the establishment of a downstream refinery to produce lithium hydroxide at the Kwinana industrial site we secured earlier this year with assistance from the Western Australian government through Landcorp,” SQM CEO Patricio de Solminihac said in a statement.

The JV is advancing a definitive feasibility study on the mine and concentrator at Mt Holland and is planning to shortly release the prefeasibility study on the Kwinana refinery. In addition, Kidman has entered into an offtake agreement with Tesla and has been progressing discussions in relation to significant additional offtake agreements with multiple parties for many months.

Kidman has also started discussions with lenders in relation to debt facilities to fund the project.

The JV is planning to commission the refinery in 2021, with an initial nameplate capacity of 44 000 t/y of lithium hydroxide, or 37 000 t/y of lithium carbonate.