PERTH (miningweekly.com) – ASX-listed Mineral Resources has amended its agreement with New York-listed Albemarle over the Wodgina lithium project, in Western Australia.

The two companies in December struck a $1.15-billion agreement under which Albemarle would acquire a 50% interest in the Wodgina project and form a joint venture (JV) to develop, mine, process and produce lithium and other minerals, besides iron-ore, at the Wodgina project.

The terms of the agreement have now been revised, with Albemarle to obtain a 60% interest in the JV, in exchange for $820-million in cash and the transfer of a 40% interest in two 25 000 t/y lithium hydroxide conversion units being built by Albemarle in Kemerton, Western Australia.

“The revised arrangements between Mineral Resources and Albemarle are a testament to the strong working relationship and open dialogue we have been able to develop over the past seven months as we have worked to implement our proposed JV,” said Mineral Resources MD Chris Ellison.

“The revised structure preserves the key features of the original transaction while reducing the overall funding requirement for both parties. It also provides an opportunity for Mineral Resources to participate in the development of the Kemerton lithium hydroxide plant, which will provide the company with an interest in an operational lithium hydroxide facility sooner than previously planned through the Wodgina development.”

Ellison on Thursday said that the Kemerton modules, when complete, would be capable of processing spodumene produced at Wodgina.

The JV would assess the optimal use of the Kemerton modules and processing of Wodgina spodumene, which could include offshore processing and the substitution of other feedstock for the Kemerton modules.

The companies were also retaining the option of developing new downstream processing facilities at Wodgina, or another location, should market conditions support it.

Albemarle CEO Luke Kissam noted that the JV would generate "great value" by bringing together the mining expertise of Mineral Resources and the conversion process and market knowledge of Albemarle.

“The changes to the transaction accelerate the JV’s ability to bring lithium hydroxide to the market to serve the commitments made to Albemarle's customers through our long-term agreements. This also allows Albemarle to reduce its capital spend for the foreseeable future while preserving greater flexibility and options for any such capacity additions in the future.”

The China State Administration for Market Regulation recently cleared the JV between Mineral Resources and Albemarle, with the transaction still remaining subject to approval from the Foreign Investment Review Board and a number of third parties.