Neometals to focus on lithium strategy

Perth-based metals developer Neometals will spin off its Barrambie titanium-vanadium project to focus exclusively on its integrated lithium development and supply chain strategy in Western Australia.

The Barrambie project, which contains one of the world's largest high-grade titanium-vanadium resources, will be injected into a separate listed company. This will enable Neometals to concentrate on its lithium business, underpinned by its 13.8pc stake in the Mt Marion lithium mine.

Neometals has previously announced plans to develop a lithium hydroxide plant outside Kalgoorlie to beneficiate its lithium concentrate offtake from Mt Marion, which exported 382,000t of lithium concentrate to China in the 12 months to 30 June.

The company is also advancing plans to develop a lithium battery recycling project to recover lithium, cobalt and other metal byproducts from the processing of off-specification and end-of-life batteries.

This project will "potentially provide the business with a significant competitive advantage in the future", Neometals said.

A new company will be formed to develop the Barrambie project, which is likely to be developed in two phases. The aim of the first phase will be to deliver direct shipping ore to China, while the production of separate high-purity titanium and vanadium concentrates will be considered in the second stage.