PERTH (miningweekly.com) – ASX-listed Mineral Resources (MinRes) on Tuesday announced plans to increase lithium production from its Wodgina and Mt Marion spodumene mines, in Western Australia.

The company has reached an agreement with US-based joint venture (JV) partner Albamarle to accelerate the resumption of production from Train 2 at the Wodgina project, with first spodumene concentrate from this train now expected in July.

MinRes told shareholders that it was well progressed with the preparations to restart operations at Train 1, with first spodumene concentrate expected in May. Each train would have a nameplate capacity of 250 000 t of 6% product.

MinRes and Albamarle in February signed a non-binding letter of agreement to explore a potential expansion of the MARBLE lithium JV. The agreement would see ownership of the Wodgina mine change from 60:40 in favour of Albamarle, to a 50:50 JV, with MinRes to resume management of the Wodgina mine.

Ownership of the Kemerton operations would remain 60:40 in favour of Albamarle, with the Kemerton operation to be fed by Albamarle’s Greenbushes lithium mine.

MinRes on Tuesday announced that spodumene concentrate feed has been introduced into Train 1 of the Kemerton lithium hydroxide plant. First product from this train is expected by May 2022. Train 2 is targeted for mechanical completion in the fourth quarter of 2022, with product expected in that quarter.

MineRes and Albamarle’s expansion plans also include a new 50:50 JV between the two companies, which would own additional lithium conversion assets outside of Australia, and would be jointly funded by the JV partners, with Albamarle to act as operator.

All spodumene produced at Wodgina will ultimately be processed through conversion facilities either built or acquired by a new 50:50 JV between MinRes and Albemarle, and MinRes will be responsible for contributing its share of the capital costs of this conversion capacity. Any spodumene produced in excess of JV conversion capacity will be either toll-converted or sold into the open market.

MinRes and Albemarle have also agreed to review the state of the global lithium market towards the end of this calendar year to assess timing for the start-up of Train 3 and the possible construction of Train 4.

Meanwhile, at its Mt Marion operation, MinRes and its JV partner Jiangxi Ganfeng Lithium have agreed to upgrade the facilities, which will result in Mt Marion’s spodumene concentrate production capacity increasing immediately from 450 000 t/y to 600 000 t/y of mixed grade product by April 2022.

A second stage of expansion incorporating a dense media separation plant upgrade, a new crushing circuit and an upgrade to the mine camp should increase installed plant capacity to a run rate of 900 000 t/y mixed grade by the end of calendar 2022.

MinRes told shareholders that the equivalent number of tonnes at a grade of 6% is projected to be approximately 600 000 t/y.

Capital expenditure for both stages is expected to be less than A$120-million.

“For some time now the world has seen extraordinary demand for lithium, driven by the strength of the electric vehicle market. This demand has resulted in a substantial increase in lithium prices, with pricing expected to remain strong for the rest of this decade,” said MinRes MD Chris Ellison.

“I’m proud of the great work our team have done at Wodgina and Mt Marion. As we continue to significantly expand our spodumene supply from these Tier 1 mines in Western Australia, we look forward to creating many more long-term jobs and supporting the surrounding communities for decades to come.

“With a world-class portfolio of highest-quality, long-life lithium assets in a Tier 1 mining jurisdiction, we are well-positioned to capitalise on the continued growth of the global electric vehicle market.”