Chris Ellison’s Mineral Resources announced yesterday its proposed 750,000 tonnes a year lithium spodumene concentrate plant at Wodinga expected to deliver $600 million in annual earnings before interest, taxes, depreciation and amortisation. This compares with the companys first-half 2018 EBITDA of $352 million.
MinRes said it expected to begin commissioning the $610 million plant in October and have it fully commissioned by Q219.
Its forecasts are based on a price of $US960/t of 6 per cent lithium spodumene and operating costs of $548/t.
MinRes also said non-binding indicative offers for a 49 per cent stake in Wodgina were expected by mid to late August with a formal announcement expected by the end of the year.
Also announced yesterday was Mineral Resources proposed 320km narrow-gauge, light rail system in the Pilbara to transport iron ore from its Iron Valley mine to Port Hedland for export was expected to cost $1.4 billion to $1.6 billion. The Pilbara Infrastructure Development would be developed on a base case of 20Mtpa with capacity to move as much as 50Mtpa.
Blue skies for Mineral Resources’ Wodgina lithium project https://t.co/mCBFm7kgWf
— Haplo (@HC_Haplo) July 24, 2018