Albemarle will take 100% ownership of the Kemerton facility in Australia, and retains its Qinzhou and Meishan lithium processing facilities in China, while MinRes will increase its stake in the Wodgina lithium mine to 50% and will remain as operator
MARBL JV Beneficiation Plant 2. (Credit: Mineral Resources)
US-based essential elements provider Albemarle and Australian mining services firm Mineral Resources (MinRes) are set to amend the terms of their agreement for MARBL JV, signed in February this year.
The amended aim to simplify the commercial arrangements between the two companies and provide enhanced strategic opportunities for each company in the evolving lithium market.
Under the amendments, Albemarle will take 100% ownership of the Kemerton lithium hydroxide processing facility in Australia, currently jointly owned by MinRes through the MARBL JV.
Albemarle will also retain complete ownership of its Qinzhou and Meishan lithium processing facilities in China.
MinRes will increase its stake in the Wodgina lithium mine to 50% and will remain as operator.
Albemarle is expected to pay around $380 to 400m, including the net consideration for MinRes’ share of Kemerton and completion adjustments at Wodgina and Kemerton.
The parties anticipate closing the amended arrangements later this year, pending regulatory approval in Australia.
Albemarle CEO Kent Masters said: “The agreement positions each company to better align its planned capital investments and assets.
“Albemarle continues to rapidly expand its Energy Storage business. Construction of the Meishan lithium hydroxide processing plant is progressing well, with completion now expected in early 2024.
“We also recently announced an expansion at the Kemerton lithium hydroxide processing facility, with construction about to begin for our 100% owned processing trains three and four.”
MinRes said that it will not continue to invest in any Chinese conversion assets with Albemarle and will not make any payments to Albemarle for joint downstream investments.
The Australian mining company will market its own share of Wodgina spodumene concentrate and lithium battery chemicals within two months of closing and has opened an office and warehouse in Ningbo, China.
MinRes will sign a transitional tolling arrangement with Albemarle to convert Wodgina spodumene until 30 June 2024, and will continue building its team in China.
The MARBL JV arrangements is expected to be completed in the December quarter, subject to approval from the Foreign Investment Review Board.
MinRes lithium chief executive Josh Thurlow said: “The changes are win for both parties. MinRes and Albemarle remain great joint venture partners in the world-class Wodgina lithium mine, while maximising flexibility to focus on the strengths of our businesses,” Thurlow said.
“It’s a testament to our working relationship that we were able to negotiate mutually beneficial outcomes that deliver value for both sets of investors.”
“For MinRes, the changes unlock value from our non-integrated Kemerton processing facility, which will provide flexibility to continue expanding our hard rock assets and develop our own integrated lithium conversion assets in Australia and abroad.”