PERTH (miningweekly.com) – Lithium developer Kidman Resources on Friday reported that its joint venture (JV) with Sociedad Quimica y Minera de Chile entered into an exclusive option to lease land in the Kwinana Strategic Industrial Area, in Western Australia, as the location for a lithium refinery.

The JV, known as Western Australia Lithium (WAL), is currently advancing a definitive feasibility study for the refinery, which will be released in late 2018.

The JV company 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.

“Putting our foot on the Kwinana site is a major step in Kidman delivering its strategy of being an ASX-listed integrated manufacture of battery-grade refined lithium,” said Kidman MD and CEO Martin Donohue.

“The benefits of the Kwinana site vastly outweigh those of the other sites we considered. Importantly, this announcement follows our recent comment regarding the high level of interest we have experienced from various parties seeking refined lithium offtake.”

WAL had considered three potential sites on which to build the refinery.

Western Australian Premier Mark McGowan said that nearly 400 jobs would potentially be created during the construction of the refinery, which was expected to start in mid-2019.  Further, the company's lithium mine and concentrator will create about 300 jobs during construction and 150 jobs during the operational phase.

"A new lithium refinery will bring significant investment to the state and local economy, including construction and operational employment opportunities,” the Premier said.

Kwinana is also where Chinese group Tianqi Lithium Australia is building its A$400-million lithium processing plant. Located in the Western Trade Coast industrial precinct, the plant will have the capacity to produce 24 000 t/y of lithium hydroxide. The Greenbushes mine, near Bunbury, will supply Tianqi Lithium’s facility.