Mineral Resources (MinRes) and Albemarle Corporation have amended the terms of the MARBL JV signed in February 2023.
The revised MARBL JV will simplify commercial arrangements between the two companies while ensuring each party has the flexibility and focus needed to create value for shareholders in an evolving market.
Under the revised terms, MinRes will expand its stake in the Wodgina lithium mine to 50% and continue to run it, while Albemarle will acquire full control of the Kemerton lithium hydroxide plant that it presently operates.
According to the February 2023 agreement, the transaction’s economic effective date will be 1 April 2022.
Albemarle will pay MinRes between US$380 and $400 million, which includes the net consideration for MinRes’ share of Kemerton and completion adjustments at Wodgina and Kemerton.
Under the revised agreements, MinRes will no longer participate in Chinese conversion assets with Albemarle and will no longer make payments to Albemarle for joint downstream investments.
MinRes will market its own share of Wodgina spodumene concentrate and lithium battery chemicals within two months of the Completion Date and has built an office and warehouse in Ningbo, China.
MinRes and Albemarle will enter into a transitional tolling agreement to convert Wodgina spodumene until 30 June 2024, allowing MinRes to continue developing its team in China.
The MARBL JV arrangements are scheduled to be completed in the December quarter, subject to Foreign Investment Review Board approval.
MinRes Chief Executive Lithium Josh Thurlow said both parties would benefit from the amendments.
“MinRes and Albemarle remain great joint venture partners in the world-class Wodgina lithium mine, while maximising flexibility to focus on the strengths of our businesses. It’s a testament to our working relationship that we were able to negotiate mutually beneficial outcomes that deliver value both sets of investors,” Thurlow stated.
“For MinRes, the changes unlock value from our non-integrated Kemerton processing facility, which will provide flexibility to continue expanding our hard rock assets and develop our own integrated lithium conversion assets in Australia and abroad,” he added.
