Li hydroxide eyed in 2022 from Mt Holland project

Australian industrial conglomerate Wesfarmers has come up with its own plan for the integrated Mt Holland lithium joint-venture project in Western Australia, which could see first lithium hydroxide production occurring in the second half of 2022.

The Perth-based firm has completed due diligence and entered into a A$776mn ($535mn) scheme implementation deed to acquire Kidman Resources, which owns half of the Mt Holland joint venture that is developing a lithium mine, concentrate and refining project. The other half of the joint venture is owned by Chile's SQM.

"Due diligence over the past few weeks has confirmed that acquisition of Kidman Resources provides an attractive opportunity to invest in and develop a large-scale, long-life, high-grade lithium hydroxide project in Western Australia," Wesfarmers said.

Wesfarmers said it has further developed its own plan in relation to the development of the Mt Holland project and intends, upon completion of the acquisition, to propose this plan, including some scope adjustments to the joint venture. It added that it sees opportunities to improve project efficiencies subject to final design.

Mt Holland comprises the Earl Grey lithium deposit, which is being developed into a mine and concentrate plant, along with a 45,000 t/yr lithium hydroxide refinery at Kwinana, south of Perth. Wesfarmers expects its share of the integrated project's development cost to be around A$700mn.

One of Australia's largest and most successful industrial groups, Wesfarmers has entered into a commitment deed with SQM relating to commercial and technical matters. SQM has agreed not to enter into discussions with any parties proposing an alternative offer for Kidman Resources.

If approved by shareholders and regulatory authorities, it is expected that the takeover scheme will be completed by September.