Mount Holland partners appeal Li lease decision

The partners in the Mount Holland lithium project in Western Australia (WA) are seeking an exemption from previous minimum mining lease expenditure obligations so they can advance plans to develop a lithium mine, concentrator and possible downstream lithium hydroxide plant.

Australia's Kidman Resources and Chile's SQM received notification last week from the Perth Mining Warden that their application for an exemption had been refused, but they are now appealing the decision to WA's mines and petroleum minister. The warden's recommendation is not binding on the minister.

The two companies formed the joint venture last year to develop the Earl Grey hard rock lithium deposit. They also announced plans for a lithium hydroxide plant at Kwinana, south of Perth.

Kidman said A$55mn ($38.5mn) has already been spent on the Mount Holland joint venture.

Technical, operational and commercial activities are under way at Mount Holland, with a definitive feasibility study on the mining and concentrating operations nearing completion. A feasibility study on a hydroxide plant is also under way and offtake terms have been agreed with US-based electric vehicle manufacturer Tesla.

"Both Kidman and SQM believe that there are compelling reasons why the minister should exercise his power under the Mining Act to grant certificates of exemption and clear the way at an early stage for the joint venture to continue to progress the project," Kidman said.