Demand sparks WA lithium projects

Demand sparks WA lithium projects
Matt Mckenzie
02-Nov-2015
Category:
Mining


There’s a good chance the phone in your pocket uses a battery powered by WA lithium, and the market is set for a technology driven boom.



The potential for mass production of electric cars is among a number of high-technology trends sparking interest in Western Australia’s lithium sector, with a series of companies touting projects to meet a forecast surge in demand.

WA is already one of the world’s largest suppliers of lithium, a light, reactive metal used in glass, polymers and metallurgy, although battery production makes up the largest share of the market (38 per cent).

As Tesla Motors, led by American entrepreneur Elon Musk, Panasonic and other global players open a series of new facilities, lithium battery production could more than triple by 2020, dramatically increasing demand for the metal itself.

Local project proponents are predicting that supply will struggle to catch up.

Two pieces of news last week provided further cause for optimism, with General Mining Corporation sealing an offtake deal for the former Galaxy Resources controlled Mt Cattlin mine, while TNG announced a memorandum of understanding with Caterpillar to secure financing for its $970 million Mount Peake project.

Mothballed in 2012, Mt Cattlin, near Ravensthorpe, contains lithium and tantalum, the latter a heavier metal with uses in electronics and in alloys.

Interest in the site was rekindled earlier this year when General Mining, headed by executive chairman Michael Fotios, bought the rights to operate the resource for $7.5 million.

Bringing the mine back into production should cost around $15 million, the company said.

Following a capital raising, the recently minted offtake deal was with Mitsubishi Corporation, and will last for at least four years.

The deal secured two-way exclusivity, giving General Mining a foothold in China, South Korea, Vietnam, and Taiwan.

A further project under way is the Neometals Mount Marion lithium mine, which reached a final investment decision at the end of September.


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