Originally posted by Henry Walton
If you think about it KDR all up have 100 years worth of lithium for their proposed refinery.
Fully integrated from ore to chemicals, their costs are going to be lower than anyone buying concentrate, won't take long till they use those fat profits to double then triple up their operations.
I see alot of discussion of who is the cheapest concentrate producer as if it matters long term, when you have KDR and MIN with huge minelifes going full integration, future is down stream.
Remember Burwill leveraged our supply into a 50/50 downstream J/V with jiangte who have provided all the money, that 50% downstream equity was given for A40 ore nothing else.
So in actual fact alot was given for that offtake it's just that we didn't get it all burwill took some.
It's not ridiculous to think a new deal where we directly deal ourselves, we could not get a stake similar to what burwill got in the refinery business.
Thats my expectation anyway after all this trouble we need more than just a decent price for our concentrate, those days are past we need to go big.
There is potential for A40 to partner with NMT to jointly develop a lithium hydroxide processing facility near Kalgoorlie. Spod can be sourced from Bald Hill which is within close proximity, along with some feed from Mt Marion which NMT recently agreed to sell their share of the mine to their partners, but have some rights to offtake option from 2020 (57ktpa, which is not a lot).
"Mr Calderwood said the existing producers potentially had decades left in their businesses through mine life extensions and growth in the electric vehicle industry, with scaling up from existing producers more likely to fill demand from converters than new producers.
He said the company would consider selling spodumene concentrate to WA-based refineries when it assesses new contracts, with Mt Marion part-owner Neometals working through plans to develop a lithium hydroxide processing facility nearby in Kalgoorlie-Boulder."
Ref:
https://thewest.com.au/business/min...thium-valley-riches-says-tawana-ng-b88922449z
