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- Mineral Resources (MIN) has upgraded its MARBL JV with NYSE-listed Abermarle
- Abermarle is to become the sole owner of the Kemerton lithium hydroxide plant while MIN will hold a 50 per cent stake in the Wodgina lithium mine
- MIN won’t need to pay Abermarle for downstream investments and will continue to develop its footprint in China until June 2024
- The giant’s management described the simplified JV agreement as a “win-win”
- MinRes shares are up 5.61 per cent, trading at $76.10 at 10:59 am AEST
Mineral Resources (MIN) has announced an improved negotiation of joint venture (JV) terms with partner and NYSE-listed Albermarle.
The JV was first inked in February this year and called the MARBL JV with a focus on harmonising efforts in the lithium space.
Under the simplified JV agreement, MinRes’ share of the north WA-based Wodgina lithium mine will increase to 50 per cent and the company will remain as operator of the mine. The giant will also not be obliged to invest in any Chinese assets with Abermarle.
However, MinRes and Abermarle have entered into an agreement that will see Wodgina spodumene treated in China until June 30 2024 to allow MinRes to further develop its operations there.
Another clause that saw MinRes obliged to pay Abermarle for joint downstream investments has also been scrapped.
Abermarle will now pay MinRes between US$380-400 million (A$560-$589 million) including the net consideration for Mineral Resources’ share of the Kemerton lithium hydroxide plant which Abermarle will now take full ownership of.
The “economic effective date” for the JV agreement remains in place, which came into force on the first of April last year.
Australia’s Foreign Investment Review Board must first approve the new deal, which is set for completion in the December quarter of this year.
“These changes are a win-win for both parties, with MinRes and Albemarle remaining great joint venture partners in the world-class Wodgina lithium mine, while maximising flexibility to focus on the strengths of our businesses,” MIN Chief Executive of Lithium Josh Thurlow said.
“For MinRes, we’ve unlocked value from our non-integrated Kemerton processing facility, which will provide flexibility to continue expanding our hard rock assets.”
MIN shares were up 5.61 per cent, trading at $76.10 at 10:59 am AEST.
