LIT’s Strategy To Focus On Downstream Technology
Lithium Australia NL (ASX: LIT) has entered into an acquisition and joint venture agreement with Galan Lithium Limited under which the latter will purchase an 80% interest in the Greenbushes South Lithium Project.
The Greenbushes South Lithium Project is located 200 km south of Western Australia’s capital Perth. With an area of 353 sq. km, Lithium Australia was initially attracted to the Project due to its proximity to the world-class Greenbushes Lithium Mine and tenure that covered the southern strike projection of the geological structure that hosts Greenbushes. The Project area commences approximately three km south of the Greenbushes open pit mining operations.
Greenbushes is currently the largest hard-rock lithium mine in the world. Operated since May 2014 by Talison Lithium Pty Ltd, an incorporated joint venture between Tianqi Lithium Corporation (51%) and Albemarle Corporation (49%), Greenbushes produces a concentrate of the lithium mineral, spodumene to feed both Chinese- and Western Australian-based mineral conversion plants, or consumers of technical-grade spodumene concentrates in Europe, North America and China. Australian mining company, IGO Limited recently signed a deal to acquire a 24.99% stake in Greenbushes from Tianqi Lithium.
Reports of work by earlier explorers within the Project record the presence of pegmatites – a rock type that may host spodumene – and so provides immediate exploration targets. Much of this earlier work focused on the discovery of the minerals cassiterite (tin) and tantalite (tantalum), as Greenbushes was at different times mined for these minerals before spodumene (lithium) became the major driver of revenue.
“The company’s divestment of a majority interest in the Greenbushes South Lithium Project to Galan is consistent with our ongoing strategy, to advance proprietary, downstream lithium and battery technologies and to deliver an ethical and sustainable supply of energy metals for batteries through innovative minerals processing and battery recycling techniques, thus creating an energy-metals loop,” Lithium Australia Managing Director, Adrian Griffin, said.
“Lithium Australia is pleased to partner with Galan, a dedicated explorer that will drive the Greenbushes South Lithium Project forward.
“This transaction means that the company reduces its financial commitment and exploration risk yet retains significant lithium commodity exposure by way of both Galan shares and 20% Project equity.”
