Progress on WA lithium projects

Kidman Resources has finalised a $110 million joint venture agreement with Chilean company SQM for the Mt Holland lithium project, while Altura Mining has begun extracting ore at its Pilgangoora lithium project.

SQM will provide funding for construction of a lithium concentrator at the project’s Earl Grey deposit, south of Southern Cross, as part of a 50-50 joint venture arrangement.

Kidman managing director Martin Donohue said he was pleased the agreement had been reached well before the target date of September 30.

“Since Kidman and SQM announced the proposed joint venture on July 12, we have been encouraged by the positive feedback from investors and stakeholders about the potential of our lithium project and refinery aspirations,” he said.

“We thank SQM for their ongoing support and look forward to working together on developing the mine and concentrator as well as a lithium refinery in Western Australia.”

SQM chief executive Patricio de Solminihac said the outlook for lithium was positive.

“SQM has searched the globe for world-class lithium projects to complement our existing production in Chile and emerging project in Argentina, and we are delighted to be partnering with Kidman to develop the integrated Mt Holland project,” he said

Also today, Altura announced lithium ore mining had begun at the pit of its Pilgangoora project in late August.

That has been stockpiled, ready for processing.

The company has additionally drawn down $US77 million from the second tranche of its senior secured debt facility.

Several other lithium projects are also moving forward in WA.

Yesterday, Pilbara Minerals announced new contracts for its upcoming lithium project, also known as Pilgangoora, with Maca to undertake open pit mining and Contract Power Group to build own and operate a generation capacity at the site.

On Friday this week, the South West Development Assessment Panel will review Tianqi Lithium’s proposed $317 million expansion of a lithium hydroxide processing plant in Kwinana.

The first stage of the facility is currently under construction.