PERTH (miningweekly.com) – ASX-listed Independence Group (IGO) on Tuesday told shareholders that its transaction with lithium producer Tianqi Lithium Corporation was progressing, as the internal restructure of that company’s Australian arm has now been approved.
The internal restructure of the Australian arm of Tianqi is one of the conditions precedent for the A$1.9-billion joint venture (JV) agreement with IGO.
Meanwhile foreign investment approval of the internal restructure, and a notice from the Australian Taxation Office confirming the tax migration of the proposed JV entity to Australia, has now been received.
IGO is hoping to complete the Tianqi transaction before the end of June.
“We are delighted to have reached this important milestone and we look forward to formally commencing our JV with Tianqi in the coming weeks,” said IGO MD and CEO Peter Bradford.
Under the terms of the agreement struck last year, IGO will acquire a 49% interest in Tianqi Lithium Energy Australia through a share subscription, giving the company a 24.99% interest in the Greenbushes lithium mining and processing operation, and a 49% interest in the Kwinana plant, both in Western Australia.
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.
Meanwhile, 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.
The second train, delivering an additional 24 000 t/y of lithium hydroxide capacity, is some 20% to 30% complete, and commissioning is expected in 2024, with some $190-million of capital expenditure still remaining.
“As a priority, the JV will initially be focused on the commissioning of Train 1 at the Kwinana lithium hydroxide refinery, as well as working with our partner Albemarle on the expansion opportunities at the world class Greenbushes lithium mine,” said Bradford on Tuesday.
“Demand for high quality spodumene and lithium hydroxide has increased significantly over recent months, promising strong returns to our shareholders as this trend, driven by global decarbonisation and electric vehicle demand, continues into the future.”