SQM eyes local expansion
Chilean lithium giant SQM has unveiled plans for an 'aggressive' expansion in Australia.
Optimistic comments have been made following SQM's recent acquisition of Azure Minerals and its new venture, the Mt Holland lithium partnership with Wesfarmers.
At the Mt Holland Mine's inauguration, located 400 kilometres east of Perth, SQM's Chief Executive Ricardo Ramos hailed Australia as the forthcoming lithium powerhouse.
“We want to invest more, we think it’s a great project, I would love to have 10 different Mt Hollands in Australia, one is not enough,” Ramos said.
Rob Scott, Wesfarmers' Chief Executive, alongside Ramos, expressed confidence in the profitability of the Covalent joint venture, poised to produce lithium hydroxide south of Perth from 2025.
The Covalent JV's operations involve mining spodumene ore from a substantial pit near Southern Cross, aiming to produce approximately 380,000 tonnes of spodumene concentrate annually.
This concentrate will be processed at a forthcoming Kwinana refinery to yield around 50,000 tonnes of lithium hydroxide yearly, with production kickstarting in early 2025. Until then, the concentrate will be exported via the nearby port of Bunbury.
Ramos envisions SQM's annual lithium carbonate production in Chile to mirror its Australian output, emphasising Australia's pivotal role in the company's global strategy.
“Australia is the future, it is the next bowl of lithium production in the world, and we want to be here,” Ramos said, noting Australia's competitive advantages in cost, safety, and community engagement.
While Wesfarmers says it remains open to additional lithium ventures, its immediate focus is on expanding the Mt Holland mine, a project into which it has already invested $892 million, atop the $776 million spent acquiring Kidman Resources for the asset in 2019.
Both Scott and Ramos hinted at a potential price rebound for lithium, propelled by stalled projects and increased demand.
However, Scott remained cautious about future price predictions, reflecting on the volatile nature of commodity markets.