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IGO to close Tianqi deal in June

2nd June 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Independence Group (IGO) on Wednesday said that it was hoping to complete its $1.4-billion transaction with lithium producer Tianqi Lithium Corporation by the end of June this year.

IGO and Tianqi last year announced the transaction which would see IGO acquire a 49% interest in Tianqi Lithium Energy Australia through a share subscription, giving the company a 24.99% interest in the Greenbushes operation and a 49% interest in the Kwinana plant.

The transaction was funded through a combination of existing cashflow, equity raise, and IGO’s A$903-million divestment of its 30% interest in the Tropicana gold project, in Western Australia, to Regis Resources.

Speaking at Paydirt’s Battery Minerals Conference, in Perth, IGO COO Matt Dusci that at the completion of the transaction, IGO is expected to have between A$300-million and A$500-million still on its balance sheet.

“This acquisition is a fundamental transformation for IGO as we continue to lead our diversification into clean energy metals,” Dusci said.

Dusci noted that at the Greenbushes mine, the project offered significant growth options.

The Greenbushes mine, some 250 km south of Perth, produced some 764 000 t of lithium concentrates in 2019, and is slated to produce between 510 000 t and 525 000 t of lithium concentrates for the 2020 year, while 2021 production is expected to reach between 850 000 t and 900 000 t.

The project currently has an operating life of some 20 years, with the potential to extend the mine life from the nearby Kapanga deposit, which is currently being evaluated.

At the Kwinana refinery, construction of the first train at the Kwinana lithium hydroxide plant is complete, and the 24 000 t/y train will be ramped-up by the fourth quarter of 2022.

Dusci said that some A$30-million of capital spend was still required on the first train for some minor construction.

At the tail end of 2022, the joint venture is expected to take the learnings from the train 1 operation and make a capital decision on the second train, which would deliver an additional 24 000 t/y of lithium hydroxide capacity.

Commissioning of the second train is expected in 2024.

Dusci said that there was sufficient capacity at the Kwinana site to allow for another two trains, which would take total capacity to 96 000 t/y of lithium hydroxide, with all of the product coming out of Greenbushes.

Edited by Creamer Media Reporter

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