Work is continuing on the stage one expansion at Greenbushes lithium mine, according to Talison Lithium, despite the business hitting a legal speed bump in a dispute with Global Advanced Metals.
Work is continuing on the stage one expansion at Greenbushes lithium mine, according to Talison Lithium, despite the business hitting a legal speed bump in a dispute with Global Advanced Metals.
Talison is spending around $320 million to double production at the mine, which produces about a third of the world’s lithium supply, to 1.3 million tonnes per annum.
A further redoubling of production is being reviewed by environmental regulators.
All of that capacity will be used to provide supply to lithium refineries in Kwinana and Kemerton, which are being built by Talison’s joint owners, Chinese company Tianqi Lithium and US-based Albemarle Corporation.
But the moves are facing a major hurdle, with a WA Supreme Court trial now set in October to potentially place an injunction stopping the expansion.
Massachusetts-based Global Advanced Metals, which holds the rights for tantalum at Greenbushes, lodged the injunction in July 2017 arguing that further lithium expansion would mean Talison potentially sterilises and wastes tantalum resources.
The business is backed by Resource Capital Funds and has a strong connection to Western Australia, including Perth-based chairman James McClements and Sirona Capital founder Kelvin Flynn, who serves as a director.
GAM has already had two small wins in the dispute, including on an application by Talison to set aside subpoenas requesting documents.
A spokesperson for Talison told Business News the mine's second spodumene concentrate facility, the first stage of the expansion, was proceeding as planned.
“We remain confident in our legal position and in the meantime are getting on with the job of expanding the Greenbushes lithium operation, creating hundreds of new jobs and building on the success of this significant contributor to the WA economy,” the spokesperson said.
GAM chief executive Andrew O’Donovan said the company supported the potential for the lithium industry to benefit WA.
“However, contractually the expansion of Talison’s lithium production cannot be at the expense of GAM’s rights to its tantalum and all other minerals at Greenbushes,” he said.
“The nature of the orebody at Greenbushes is such that the proposed expansion of lithium mining and processing in its current form will irreparably sterilise tantalum owned by GAM.
“The mining agreement between our two companies, which moderates this trade-off between lithium and the other mineral rights, is being ignored by Talison.
“There is growing market demand for tantalum capacitors and other tantalum derived products and markets.
“Over a decade ago, WA was the largest single source of tantalum raw material in the world and GAM’s plans involving tantalum production from Greenbushes and other sources will once again place WA at the centre of global tantalum supply, thus introducing much needed supply stability to the industry and its end users.
“We initiated this litigation to secure GAM’s rights.”
