Name of the Project
Mt Holland lithium mine.

Location
Australia.

Project Owner/s
Covalent Lithium, a 50:50 joint venture between Wesfarmers and Sociedad Quimica y Minera de Chile (SQM).

Project Description
An updated definitive feasibility study (DFS) has provided greater certainty about the project’s engineering design and capital and operating costs, as well as an increase in concentrator and refinery production capacity from 45 000 t/y to 50 000 t/y of battery-grade lithium hydroxide.

The updated DFS includes increased flexibility to provide for a second phase of the project to expand production capacity at Mt Holland and the Kwinana refinery. Preliminary work to evaluate expansion options will start in parallel with the construction of the first phase of the project.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Wesfarmers’ share of capital expenditure for the development of the project is estimated at A$950-million and will be funded using existing cash and debt facilities.

Planned Start/End Date
Following receipt of all relevant approvals, construction of the mine, concentrator and refinery are expected to start in the first half of 2022, with purchase of long-lead time items starting in late 2021. The first production of lithium hydroxide is expected in the second half of 2024. 

Latest Developments
The joint approval of the final investment decision (FID) for the Mt Holland lithium project, and committed initial funding was announced in January 2021. Full funding will be committed upon receiving environmental approvals for the Kwinana refinery, which are expected early in the 2022 financial year.

Development of the integrated project remains subject to the Western Australian Environmental Protection Authority's assessment of the Kwinana refinery and the issuance of a Ministerial Statement to allow for works to start.

Key Contracts, Suppliers and Consultants
Hatch (PFS).

Contact Details for Project Information
Wesfarmers, tel +61 8 9327 4211 or email info@wesfarmers.com.au.
SQM, tel +56 2 2 425 2000 or email ir@sqm.com.