Name of the Project
Mt Holland lithium mine.

Location
Australia.

Client
Covalent Lithium, a 50:50 joint venture between Wesfarmers and Sociedad Quimica y Minera de Chile.

Project Description
A prefeasibility study (PFS) on the Kwinana lithium refinery and an updated scoping study on the proposed Mt Holland lithium mine and concentrator, together with the Mt Holland lithium project, have confirmed a compelling business case with attractive business economics.

The project will produce a spodumene concentrate from the mine and concentrator, which will be transported to the refinery and processed to produce an average of about 45 254 t/y of battery-grade lithium oxide.

The PFS on the refinery has evaluated a range of options including different production rate scenarios and the construction of a dual plant capable of producing lithium hydroxide (LiOH) and lithium carbonate.

The preferred option selected is a refinery that will process 315 000 t/y of spodumene concentrate produced at the Mt Holland mine and concentrator to produce an average of about 45 254 t/y of battery-grade LiOH.

The project has a mine life of 47 years.

Potential Job Creation
The project is expected to create about 700 full-time jobs during construction and about 300 full-time jobs during operations.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of $2.3-billion and an internal rate of return of 27.7%, with a rapid payback of three years.

Value
The project is estimated at $601-million, excluding contingency.

Duration
Not stated.

Latest Developments
Wesfarmers has delayed its final investment decision on the Mt Holland lithium project by a year to the first quarter of 2021, as it focuses on cost-cutting amid weakening prices of the metal.

The decision follows a review in November of a feasibility study run by Covalent Lithium, a joint venture between Wesfarmers and Sociedad Quimica y Minera de Chile, one of the world's largest producers of lithium products.

Wesfarmers MD Rob Scott in a statement that the deferral would help to optimise project design, leading to a clearer decision-making process next year.

Key Contracts and Suppliers
Hatch (PFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kidman Resources, tel +61 407 789 018 or email info@kidmanresources.com.