Albemarle Announces Completion of Lithium Joint Venture with Mineral Resources Limited

CHARLOTTE, N.C., Oct. 31, 2019 /PRNewswire/ --AAlbemarle Corporation (NYSE: ALB), a leader in the global specialty chemicals industry, announced today that it has closed its transaction with Mineral Resources Limited ("MRL") (ASX: MIN) under the Asset Sale and Share Subscription Agreement that was entered into on December 14, 2018, and subsequently amended on August 1, 2019, and the MRL Kemerton Sale and Purchase Agreement that was entered into on August 1, 2019 ("Agreement").AThe 60/40 joint venture between Albemarle and MRL, respectively, is named MARBL Lithium Joint Venture ("MARBL").
Albemarle Announces Completion of Lithium Joint Venture with Mineral Resources Limited
Under the Agreement, Albemarle has acquired a 60% interest in MRL's Wodgina spodumene mine in Western Australia for US$1.3 billion, consisting of a cash payment of US$820 million, and the transfer to MRL of a 40% interest in two 25 ktpa lithium hydroxide conversion trains being built by Albemarle at Kemerton in Western Australia.AMARBL will manage the operation of the Wodgina mine and the Kemerton conversion trains. Albemarle will market 100% of the output from the Wodgina mine and Kemerton lithium hydroxide conversion trains.The 50 ktpa lithium hydroxide conversion capacity at Kemerton is currently scheduled to be commissioned in stages starting in the first half of 2021.AThe timing and location of any further lithium hydroxide conversion capacity that may be developed by the joint venture will be based on market demand and will be funded 60/40 by Albemarle and MRL.Based on current market conditions, the Wodgina mine will idle production of spodumene until market demand supports bringing the mine back into production.
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