PERTH (miningweekly.com) – The share price of ASX-listed Mineral Resources rose more than 8% on Friday after the China State Administration for Market Regulation cleared the sale of a 50% interest in the Wodgina lithium project.
Mineral Resources in November of last year struck a deal with US major Albemarle to divest of a 50% interest in Wodgina, in Western Australia, for $1.15-billion.
The transaction is still subject to Australian Foreign Investment Review Board approval, as well as certain third-party approvals.
Mineral Resources is currently mining direct shipping ore at Wodgina and progressing its openpit pre-strip and constructing its spodumene concentrate plant.
The joint venture (JV) between Mineral Resources and Albemarle is expected to produce up to 750 000 t/y of 6% spodumene concentrate from the project, which will ultimately be used as feedstock for a planned lithium hydroxide plant, once it has been constructed.
The lithium hydroxide plant will be jointly funded, designed and built by the JV partners, with the first stage of the plant expected to produce at least 50 000 t/y of lithium hydroxide, with construction to start as soon as the necessary licences and approvals are in place.
The second stage of the plant will convert the remaining volume of spodumene concentrate into lithium hydroxide, doubling production to at least 100 000 t/y of lithium hydroxide, subject to market demand.
Albemarle is expected to manage the marketing and sales of the lithium hydroxide produced by the JV, and will make its proprietary lithium hydroxide plant designs available for the JV.
Mineral Resources shares were trading at a high of A$16.74 a share on Friday, up from a low of A$15.39 a share.