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https://thewest.com.au/business/mining/minres-flags-big-lithium-expansion-c-6339997

Mineral Resources flags big lithium expansion in WA as global market surges

Stuart McKinnonThe West Australian
Tue, 5 April 2022 12:45PM
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Stuart McKinnon


Mineral Resources' Wodgina lithium project in the Pilbara. Credit: Mineral Resources/Mineral Resources

Mineral Resources has underlined the strength of the global lithium market with a big planned upgrade in production at its two WA operations.

Shares in the Chris Ellison-led company surged after it revealed it had secured agreements with joint venture partners at its Wodgina operation in the Pilbara and its Mt Marion mine near Kalgoorlie to significantly boost lithium concentrate output.

The announcement comes after a recent index of global lithium prices compiled by Benchmark Mineral Intelligence revealed a surge of nearly 490 per cent in the past year, with demand for the energy metal expected to jump five-fold by the end of the decade.

MinRes and its US joint venture partner Albemarle only agreed to restart Wodgina Train 1 in October but on Tuesday the diversified miner and mining services company said it would also look to restart Train 2, boosting the operation’s output to 500,000tpa of 6 per cent lithium concentrate.

The company said it expected production from Train 1 to resume in May with Train 2 following in July.

The update comes as MinRes looks to lift its stake in Wodgina by 10 per cent to 50 per cent and resume operatorship under an agreement with Albemarle flagged in February.

MinRes also said it would again review the state of global lithium market towards the end of the calendar year to assess timing for the start-up of Train 3 and the possible construction of Train 4 at Wodgina.

At Mt Marion, MinRes said it had agreed with 50/50 Chinese joint venture partner Gangfeng to immediately lift production from 450,000tpa to 600,000tpa of mixed grade product. A further investment would lift output to 900,000tpa of mixed grade product by the end of the year, equivalent to 600,000tpa of 6 per cent product.

MinRes also advised that first spodumene concentrate feed had been introduced into Train 1 of the new Kemerton lithium hydroxide plant, which it owns on a 40/60 basis with Albemarle.

It said first product from that train was expected by May with construction of Train 2 targeted for the December quarter with first product expected in the same three-month period.

Mr Ellison said the world was seeing extraordinary demand for lithium, driven by the strength of the electric vehicle market.
“This demand has resulted in a substantial increase in lithium prices, with pricing expected to remain strong for the rest of this decade,” he said.
“With a world-class portfolio of highest-quality, long-life lithium assets in a Tier 1 mining jurisdiction, we are well positioned to capitalise on the continued growth of the global electric vehicle market.”

MinRes shares were up $2.91, or 5.15 per cent, to $59.37 at 12.45pm.