PERTH (miningweekly.com) – ASX-listed Mineral Resources Limited (MRL) said on Friday that it had decided to start mining at the Mount Marion lithium project, in Western Australia.

It is expecting production to start before the end of March next year, at an initial rate of 200 000 t/y of spodumene concentrate, grading 6,5% lithium oxide, containing some 13 000 t of lithium oxide.

At present, the project is estimated to host around 128 000 t of lithium oxide.

Joint-venture (JV) partner Reed Resources would now exercise its option to acquire 100% of the granted mining leases from the tenement holder. Under the JV agreement, MRL will fund both the exercise price and the decision to mine payment to the prospector at settlement.

"This project will ensure both Reed and MRL can become major participants in the world lithium market," said Reed MD Chris Reed.

"The ability to produce high-quality lithium concentrates with access to existing infrastructure, rapid definition of the resource potential, low strip ratio, and the project's close proximity to Kalgoorlie enabled the JV partners to reach this milestone very efficiently."

MRL executive chairperson Peter Wade said on Friday that the company's model for fast-tracking resource identification, project evaluation and process development has proved critical in achieving a positive outcome for Mount Marion.

"Mount Marion will be a key player in the world expansion of lithium technology and provide substantial volume into existing and expanding world-wide demand."

The JV partners were now reviewing the marketing strategies for the project's production with interest being expressed from a number of international sources close to established lithium markets.

Substantial interest has also been expressed from local and international companies for downstream processing of the spodumene concentrate and that opportunity will be further assessed, Wade said.

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