EPA approves Covalent's lithium project

Covalent Lithium's Earl Grey lithium project has been recommend for approval by the Environmental Protection Authority, provided its proponents minimise the impact on flora and fauna, including chuditch and malleefowl.

The proposal is to mine a lithium deposit adjacent to its Mt Holland lithium project, about 105 kilometres south-east of Southern Cross.

Covalent is a 50-50 joint venture between Wesfarmers and Chile's SQM.

EPA chair Tom Hatton said the Earl Grey proposal could be environmentally acceptable if certain conditions were implemented.

"This is the second largest lithium mining proposal, along with the Greenbushes mine expansion, the EPA has assessed this year," he said.

"The EPA is recommending the proponent prepares management plans for its impact to the surrounding environment, including habitat for malleefowl and chuditch, as well as develop an offsets strategy for threatened flora and fauna."

The report is open for a two-week public appeal, before the environment minister makes the final decision.