PERTH (miningweekly.com) – ASX-listed Independence Group (IGO) has completed a A$1.9-billion joint venture (JV) transaction with lithium producer Tianqi Lithium Corporation over its Australian lithium assets.
Under the terms of the JV agreement, IGO and Tianqi have formed a new globally focused lithium JV which is owned 49% by IGO and 51% by Tianqi, and which will be the exclusive vehicle for lithium investments outside China for IGO and Tianqi.
The JV will initially focus on the existing upstream and downstream lithium assets located in Western Australia, which comprise a 51% stake in the Greenbushes lithium mine and a 100% owned and operated interest in the Kwinana lithium hydroxide refinery.
Once commissioned, the Kwinana refinery will be the first fully automated lithium hydroxide refinery in Australia, producing battery grade lithium hydroxide from high quality spodumene concentrate from Greenbushes.
“Our new partnership with Tianqi promises to be truly transformational for IGO and delivers on our strategy focused on the clean energy revolution. We are incredibly excited to commence this journey with Tianqi as we build a globally relevant lithium business delivering high quality, responsibly produced lithium products to global customers while generating strong financial outcomes for shareholders,” said IGO MD and CEO Peter Bradford.
The commissioning process for the first lithium hydroxide plant at Kwinana has started, including the formation of the commissioning team and the appointment of a lead contracting firm to complete the remaining rectification work. First lithium hydroxide is expected to be produced in the second half of 2021.
In addition, the restart and ramp-up of Greenbushes chemical grade plant 2 has been undertaken and the completion and commissioning of the tailings retreatment project is expected in early 2022.
“We are pleased to have now formed our new strategic partnership with IGO and, through the JV, look forward to growing a leading global lithium business and delivering on our shared vision for a clean energy future,” said Tianqi’s founder and chairperson Jiang Weiping.
“Our new joint venture is ideally positioned in this market with quality upstream and downstream assets capable of generating strong financial returns for both IGO and Tianqi.”