LITHIUM MINES AND MINING – AUSTRALIA

MinRes aware of claims for two years

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Original article by Elouise Fowler, Mark Wembridge, Alex Gluyas
The Australian Financial Review – Page: 13 : 30-Oct-24

Mineral Resources has advised that it had hired external lawyers in June 2022 to investigate the tax evasion allegations against MD Chris Ellison. The company also disclosed that it received more detailed allegations regarding Ellison in June and November 2023; the board also discussed the issue in June 2024. However, MinRes has stated that it did not inform shareholders of the investigation because it did not think it would have a material effect on the company’s share price. MinRes has emphasised that the sales contracts in question were struck prior to its IPO in 2006, and were made by entities that became part of MinRes when the company listed on the sharemarket.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN

Lithium rollercoaster decade: IGO

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 13-Sep-24

Data from S&P Global Platts shows that spodume was fetching $US730 per tonne on Wednesday, compared with a peak of more than $US8,000 in early 2023. IGO CEO Ivan Vella says investors should expect further volatility in the price of lithium over the long-term. Vella adds that battery minerals will continue to be the focus for IGO, which produces both lithium and nickel. However, IGO aims to diversify its operations by expanding into copper production; this will help offset the "extreme" volatility of the lithium sector and the structural changes in the nickel market caused by Indonesia’s move to ramp up production with Chinese backing.

CORPORATES
IGO LIMITED – ASX IGO, S&P GLOBAL PLATTS

Australia’s only profitable lithium mine

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Original article by Elouise Fowler
The Australian Financial Review – Page: 15 & 20 : 4-Sep-24

Australia currently has seven lithium mines in the production stage, but Citigroup’s brokers estimate that the Greenbushes mine is the only one that is profitable at present. This is based on the running costs of each mine at the current spot price. Data from S&P Global Platts shows that the spot price of spodumene concentrate with six per cent lithium content has fallen by 23 per cent over the last 45 day, and was trading at $US720 per tonne on 2 September; this compares with more than $US8,000 per tonne in 2022.

CORPORATES
CITIGROUP PTY LTD, S&P GLOBAL PLATTS

Lithium’s sharp decline to weigh on Australian exports

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Original article by Simone Grogan
The West Australian – Page: Online : 2-Jul-24

The federal Department of Industry, Science & Resources expects the total value of Australia’s lithium exports to have been just $10bn in the year to 30 June. This compares with $20bn in the 2022-23 financial year, with the latest result being affected by a sharp fall in the price of the battery metal. However, the department’s quarterly report concludes that the price of both lithium and copper may have bottomed. It also says the outcome of the US presidential election could potentially accelerate that nation’s transition to renewables and electric vehicles, which in turn could boost demand for Australia’s critical minerals.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE AND RESOURCES

Miner seeks fair go on tax breaks

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Original article by Brad Thompson, Andrew Tillett
The Australian Financial Review – Page: 1 & 19 : 18-Jun-24

Tianqi Lithium CEO Frank Ha says the Chinese company expects to be treated the same as other foreign investors when it comes to getting access to the tax incentives that the federal government is offering to the critical minerals sector. Tianqi Lithium pioneered lithium processing in Australia, with Ha speaking as the company prepares to host Prime Minister Anthony Albanese and Chinese Premier Chinese Premier Li Qiang at its lithium hydroxide plant south of Perth on Tuesday; his call for Tianqi Lithium to get access to the tax incentives is backed by mining billionaire Andrew Forrest.

CORPORATES
TIANQI LITHIUM CORPORATION

Lithium miners plead foreign entity case to US

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 21-May-24

Australian miners are seeking access to lucrative subsidies available under the US Infrastructure Investment and Jobs Act and the Inflation Reduction Act. However, critical minerals that are "subject to the control" of Russia, China, Iran and North Korea are not eligible for the subsidies, as the US considers those countries to be "foreign entities of concern". This has led to concern that two of Australia’s biggest lithium mines, Greenbushes and Mt Marion, will be ineligible for the subsidies as they are 26 per cent and 50 per cent owned by Chinese companies Tianqi and Ganfeng respectively. The other 50 per cent of Mt Marion is owned by Australia’s Mineral Resources, and Tim Picton from MinRes believes it would be "counter-intuitive" for product from Mt Marion to be viewed as subject to the control of a foreign entity of concern.

CORPORATES
TIANQI LITHIUM CORPORATION, GANFENG LITHIUM COMPANY LIMITED, MINERAL RESOURCES LIMITED – ASX MIN

Pilbara Minerals sets new record for spot lithium cargo

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Original article by Stuart McKinnon
The West Australian – Page: Online : 28-Oct-21

Pilbara Minerals has held its third auction of lithium concentrate since launching its Battery Material Exchange earlier in 2021. Pilbara Minerals has advised that it received a record bid of $US2,350 per tonne for a 10,000 tonne cargo of 5.5 per cent lithium concentrate in its latest auction via the digital platform. The price of lithium has more than doubled in the last year, amid rising demand for the battery mineral.

CORPORATES
PILBARA MINERALS LIMITED – ASX PLS

Construction wages barrier to developing lithium battery industry

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Original article by Jacob Greber
The Australian Financial Review – Page: Online : 24-Jun-21

Australia has the potential to develop the first legitimate mine-to-lithium battery industry outside of China, according to a report prepared for the Future Battery Industries Co-operative Research Centre. Such an industry would have the potential to inject $7.4 billion into the economy by 2030, as well as creating almost 35,000 jobs. The report contends the high cost of construction wages as being one barrier to developing a lithium battery industry, along with a lack of university-educated specialists. Global lithium battery sales are tipped to be worth between $US133 billion ($176 billion) and $US151 billion by 2030.

CORPORATES
CO-OPERATIVE RESEARCH CENTRE FOR FUTURE BATTERY INDUSTRIES

Australia’s lithium boom underwhelms

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 28-Jun-19

Lithium prices have fallen in 2019 as analysts had predicted, but not necessarily just for the reason that they had forecast. Analysts had suggested that a surge in supply would "crush" lithium prices, but reduced demand in China and a delay in developing and commissioning new capacity in China for converting Australia’s spodumene concentrate into battery-grade lithium have also been cited as factors. Australian lithium exports are certainly growing more slowly than expected.

CORPORATES
GALAXY RESOURCES LIMITED – ASX GXY, PILBARA MINERALS LIMITED – ASX PLS, ALLIANCE MINERAL ASSETS LIMITED – ASX A40, ALTURA MINING LIMITED – ASX AJM, OROCOBRE LIMITED – ASX ORE

Banks might be warming to lithium

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 16-Nov-18

Patrick Cocquerel of Westpac says the lack of a benchmark price for lithium has made banks somewhat reluctant to provide financing for Australian lithium producers. The nation’s burgeoning lithium industry has instead been largely financed via debt, equity, specialist lenders and payments from forward sales of the metal. Foreign banks have also been more willing to provide financing for lithium projects, but Cocquerel notes that local banks – including Westpac – are becoming more active in the sector.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PILBARA MINERALS LIMITED – ASX PLS, GALAXY RESOURCES LIMITED – ASX GXY, BNP PARIBAS SA, KIDMAN RESOURCES LIMITED – ASX KDR, SOCIEDAD QUIMICA Y MINERA SA, S&P GLOBAL MARKET INTELLIGENCE, ALBERMARLE CORPORATION