Neometals mulls Li refinery site at Kalgoorlie

Australian lithium producer Neometals has signed an option agreement to develop a lithium hydroxide refinery in Kalgoorlie, Western Australia, providing a further boost to the region's growing status as a future producer of downstream lithium products.

The site is 70km from the Mt Marion lithium mine that exports lithium concentrate to China. Neometals aims to redirect output accruing from its 13.8pc stake in the mine to the refinery, which is expected to produce up to 10,000 t/yr of battery-grade lithium hydroxide.

"Our aim is to develop a closed-loop lithium eco-system with access to the lithium raw material source, value adding for use in the battery supply chain and ultimately recycling of spent batteries," Neometals chief executive Chris Reed said.

"We are already part of the global lithium supply chain, which gives us clear industry insight and confirms the future demand outlook for lithium hydroxide from hard rock," he said.

An initial engineering and design study on the refinery project is expected to be completed in early 2019, with an investment decision due to be taken in the June quarter of that year. The refinery is expected to be operational in mid-2021, if the investment decision is taken on schedule.

Neometals has signed an initial agreement with the city of Kalgoorlie-Boulder for assistance in the procurement of infrastructure and utilities for the proposed Kalgoorlie refinery.

Other companies developing or considering lithium hydroxide plants in Western Australia include China's Tianqi Lithium, US-based Albermarle and Australian lithium producer Mineral Resources.