Mineral Resources and its huge US partner Albermarle have bowed to the inevitable and will re-open the lithium mine they own in the Pilbara and an associated processing plant at Kemerton.
Global lithium prices have surged in 2021 as the battery push and growth in the electric vehicle market has re-ignited demand for the metal after it was crunched in 2019 by oversupply.
The Wodgina mine was mothballed in late 2019 by both companies “because of the then weak global market conditions”. It will be partially restarted and is expected to start producing spodumene concentrate in a year’s time.
The activity is expected to create 200 new full-time jobs and will start with one of three procession lines capable of producing 250,000 tonnes each year.
“We are delighted that the MARBL joint venture (which controls the mine and the plant) has decided to restart Wodgina, a world-class lithium opportunity that Mineral Resources developed into a mine with world-class potential, ” Mineral Resources’ CEO, Chris Ellison said on Monday.
The news sent MinRes shares up 12% to a day’s high of $43.62 before settling back to end the session up 9% at $42.91.
MARBL is a 40/60 joint venture between Mineral Resources and Albemarle Corporation which formed in November 2019 to develop Wodgina and to operate the Kemerton lithium hydroxide conversion plant
After Mineral Resources’ sale of 60% of Wodgina to Albemarle, the mine was put on care and maintenance to await an upturn in lithium prices.
In Monday’s statement, Mr Ellison said he was pleased with how his company had handled Wodgina in partnership with Albemarle.
“We are delighted that the MARBL JV (joint venture) has decided to restart Wodgina, a world-class lithium opportunity that MRL (Mineral Resources) developed into a mine with world-class potential,” he said.
“It was the correct decision in late 2019 to place Wodgina on care and maintenance though it never dented our confidence in lithium’s long-term positive demand fundamentals.
“As said at the time and repeat today, in Albemarle we have the best partner to deliver maximum and sustainable value from world-class assets like Wodgina.”
The operation has installed processing capacity of 750,000 tonnes per annum (tpa) of spodumene concentrate, made up of three 250,000tpa processing lines.
These lines will be restarted one by one, in line with increasing market demand for spodumene concentrate.
