Albermarle enters into lithium joint venture with Mineral Resources for $1.1bn
One of the world’s leading speciality chemicals mining company, with leading positions in lithium, bromine and refining catalysts, has entered into a multi-billion-dollar deal for a significant lithium project in Western Australia.
Albermarle announce in a statement this week that it had entered into an exclusivity agreement with Mineral Resources in relation to the potential sale of a 50% interest in the Wodinga Lithium project and the formation of a 50:50 joint venture.
The sale has been valued at around $1.1bn in cash which was based on a US$2.3Bn enterprise value for the Wodgina Lithium Project on a 100% basis.
Albemarle will acquire a 50% interest in all mineral rights within the Wodgina tenements other than iron ore (which will be retained exclusively by MRL) and tantalum (which remain held by Global advanced Metals Greenbushes Pty Ltd), all fixed infrastructure and utility assets, the spodumene concentrate plant and the mobile mining equipment.
The Wodgina JV is expected to produce up to 750Ktpa of 6% spodumene concentrate from Wodgina which is ultimately intended to be used as feedstock for the lithium hydroxide plant (outlined below) once constructed.
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Managing Director of MRL, Mr Chris Ellison said: “I am extremely pleased we have been able to reach agreement with Albemarle on the basis on which we will negotiate exclusively regarding a potential joint venture at Wodgina. It is very apparent to me that there is an extremely good fit between the corporate cultures and skillsets of our respective businesses.”
“I am confident that with MRL and Albemarle working together at Wodgina, we will produce and supply high quality, competitively priced lithium products into the market to meet increasing global requirements for these important energy storage products.”