Shares in mining company IGO jumped nearly 10% at one stage yesterday after it told the market that its $2 billion plunge into lithium was nearing completion.
IGO said it is near the end of its company remaking deal with China’s Tianqi Lithium Corp.
Tianqi has received approval from the Australian Tax Office for it to transfer a subsidiary from the UK to Australia.
Both parties have agreed to proceed even though the ATO has not yet confirmed if the transfer will attract tax, saying they will split the costs if there is a tax bill.
They now expect the deal to be completed before the end of this month.
Announced in December last year, nickel and gold miner IGO is buying about 25% of the Greenbushes lithium mine in WA and nearly half of the Kwinana refinery for $1.9 billion.
IGO’s CEO, Peter Bradford said in the release: “We are delighted to have reached this important milestone and we look forward to formally commencing our joint venture with Tianqi in the coming weeks.
“As a priority, the joint venture will initially be focused on the commissioning of Train 1 at the Kwinana Lithium Hydroxide Refinery, as well as working with our partner, Albemarle, on the expansion opportunities at the world class Greenbushes Lithium Mine.
“Demand for high quality spodumene and lithium hydroxide has increased significantly over recent months, promising strong returns to our shareholders as this trend, driven by global decarbonisation and electric vehicle demand, continues into the future.
IGO shares closed up 6.2% at $7.52.
