Joint venture partners Albemarle, Mineral Resources to restart Wodgina mine in Pilbara as lithium prices soar

Joint venture partners in the Wodgina lithium mine will restart the operation on the back of soaring prices for the battery metal.

Wodgina, which is a joint venture between US chemicals giant Albemarle (60 per cent) and Mineral Resources (40 per cent), will be ramped up in a staged process to meet market demand.

The mine 120km south of Port Hedland was shuttered in November 2019 on weak market conditions for lithium.

MinRes said Monday the mine would be restarted in the third quarter of calendar 2022, producing from one of three 250,000 tonne-a-year processing lines, or a third of total capacity.

“When market demand is sufficient additional processing lines may be recommenced,” the company said in a statement.

“The start-up and initial operating phase at Wodgina is expected to create 200 new full-time jobs.”

Under the terms of the joint venture, MinRes will provide crushing and camp services at Wodgina while Albemarle will market the output.

MinRes managing director Chris Ellison said the mine’s placement on care and maintenance in 2019 had never dented the joint venture’s confidence in lithium’s long-term positive demand fundamentals.

“As we said at the time and repeat today, in Albemarle we have the best partner to deliver maximum and sustainable value from world-class assets like Wodgina,” he said.

“Lithium is one of Mineral Resources’ two core commodities, alongside iron ore, and we have worked very hard over the past five years to establish long life operations for both.”

MinRes also holds a 40 per cent stake in Albemarle’s Kemerton lithium hydroxide plant, which is nearly complete.

The company also holds a 50 per cent stake in the Mt Marion lithium mine near Kalgoorlie.

MinRes shares were up $2.29, or 5.8 per cent, to $41.67 at 7.10am.