The two companies will work together on the development of the Trigg Hill Lithium Tantalum project in Western Australia
Eastern Iron and Yahua to establish partnership for the supply of spodumene concentrates. (Credit: Goran Horvat from Pixabay)
Eastern Iron has partnered with Ya Hua International Investment and Development (Yahua) to acquire and develop lithium projects in Australia and other countries.
Yahua, a wholly-owned subsidiary of Sichuan Yahua Industrial Group (Yahua Group), is a substantial shareholder of Eastern Iron.
After taking into account the growing demand for lithium products, the two companies have decided to work together on the development of the Trigg Hill Lithium Tantalum project.
Located in East Pilbara, Western Australia, the Trigg Hill mine is an old tantalum and tin mine that operated during 1960s and early 1980s.
In August this year, Eastern Iron signed an agreement to acquire 100% stake in the Trigg Hill project.
Upon completion of the acquisition and the definition of an initial exploration target for Trigg Hill, the two companies are expected to form a joint venture for the exploration and development of the project.
Eastern Iron Chairman, Eddie King stated, “Following Yahua’s substantial investment in EFE, the Strategic Partnership Agreement with Yahua is a transformational agreement for the Company and should be an exciting phase for all stakeholders involved with Eastern Iron.
“The Strategic Partnership Agreement provides the Company with an advantage to acquire and develop lithium projects as we seek to strengthen our position in providing green energy solutions for future generations.”
Under the new agreement, Eastern Iron and Yahua intend to establish a long-term partnership for the supply of spodumene concentrates.
Yahua will be given a first right of refusal on offtake of spodumene products from any of the JV projects.
As part of the partnership, Eastern Iron will have an option to sign a long-term offtake agreement with Yahua for spodumene products produced from other projects owned by it.
With a production capacity of 43,000tpa lithium carbonate, lithium hydroxide and other lithium products, Yahua Group is one of China’s major lithium hydroxide and lithium carbonate producers.
It customers include Tesla, BYD Auto, Zhenhua E-Chem and Sinopec.