Kidman Resources’ (ASX:KDR) share price has increased by 15% with investment decision news related to the company’s Mt Holland project in Western Australia, which is set to create 300 full time roles as well as almost $2 billion in royalties to the Government of Western Australia.
The company is part of the Covalent Lithium joint venture between themselves and SQM, one of the world’s largest lithium producers. The Earl Grey resource is a large hard rock Spodumene deposit located around 110km southeast of Southern Cross. The ore mined will be processed at a Lithium Hydroxide Processing Facility to be located in Kwinana.
The Covalent joint venture have also released results from their Preliminary Feasibility Study for the Kwinana Refinery as well as anticipated mine and concentrator. The projected total costs will be $849 million, which accounts for the mine and processing plant to output an annual production of 45 254 tonnes of lithium hydroxide – 40 000 tonnes of lithium carbonate equivalent
The project is projected to create 700 full-time jobs (400 at the refinery) during construction and 300 (150 at the refinery) in the operations phase.
“These studies mark an important milestone in our project to deliver a long-life, vertically-integrated lithium mine-to-refinery operation in Western Australia,” Kidman chief executive officer and managing director Martin Donohue said.
“Covalent Lithium will be a producer of premium refined battery-grade lithium, which will be a competitive advantage for Kidman’s marketing activities both now and into the future.
“We are pleased with the findings of these studies including the attractive economics, the clear potential to further optimise the cost structure and the opportunities for local job creation.”
A final investment decision on the project is expected to take place early next year.