CHARLOTTE, N.C., Nov. 21, 2018 /PRNewswire/ -- Albemarle
Corporation (NYSE: ALB), a leader in the global specialty chemicals
industry, announced today that it has signed an Exclusivity
Agreement (Agreement) with Mineral Resources Limited (ASX: MIN) in
relation to the potential creation of a 50/50 joint venture (JV) to
own and operate the Wodgina hard rock lithium mine and ultimately
develop an integrated lithium hydroxide operation at the resource
site. Wodgina, located in the Pilbara region of Western Australia, is a world-class hard rock
lithium deposit, with an estimated mine life of over 30 years.
The proposed JV, which remains subject to negotiation of
definitive documents, would combine Albemarle's world-class lithium production and
marketing expertise with Mineral Resources Limited's (MRL) leading
regional presence and mining capabilities. Under the terms of the
Agreement, Albemarle would manage
the marketing and sales of lithium hydroxide produced by the JV via
Albemarle's long term agreement
strategy.
The purchase price for Albemarle's 50% interest in the JV would be
US$1.15 billion, which Albemarle expects to fund with available cash
and new credit facilities. It is expected that the transaction will
be accretive to Albemarle's
earnings.
"This Agreement is consistent with our corporate strategy of
pursuing M&A opportunities that can accelerate and de-risk our
organic growth strategy," said Luke
Kissam, Albemarle's CEO.
"We feel confident in leveraging this world-class lithium resource
with an experienced and knowledgeable mining company like MRL to
help meet the growing demands of our global customers."
The Agreement includes the following key provisions and
commercial terms:
- Albemarle would acquire a 50%
interest in all mineral rights within the Wodgina tenements, other
than iron ore (which will be retained exclusively by MRL) and
tantalum (which remain held by a third party), all fixed
infrastructure and utility assets, the spodumene concentration
plant and the mobile mining equipment.
- The parties would jointly manage the JV, through a company to
be owned in equal shares by the parties.
- After construction and ramp-up of the spodumene concentration
plant, the JV is expected to produce up to 750Ktpa of 6% spodumene
concentrate from Wodgina which is planned to be used as feedstock
to the future lithium hydroxide plant (outlined below).
- The parties would jointly fund, design, build and operate a
lithium hydroxide plant in stages at Wodgina utilizing Albemarle's core design.
-
- The first stage, once fully commissioned, is expected to
produce at least 50ktpa of battery grade lithium hydroxide.
Construction would commence as soon as the necessary licenses and
approvals are in place.
- The second stage is expected to convert the remaining volume of
spodumene concentrate to battery grade lithium hydroxide (subject
to prevailing lithium market conditions at the time supporting this
development), at which point the plant is expected to be producing
at least 100Ktpa of lithium hydroxide.
- An exclusivity period until December 14,
2018 (or such later period as the parties mutually agree)
for the parties to agree upon and execute binding definitive
documents.
While the above terms have been commercially agreed and the
Agreement is binding in respect to the exclusivity period, the
parties will only become legally bound to enter into the proposed
joint venture upon execution of definitive documents and board
approval by the parties. Completion of the transaction will be
subject to satisfaction of conditions of an administrative nature,
any regulatory approvals and any third party consents.
About Albemarle
Albemarle Corporation (NYSE:
ALB), headquartered in Charlotte,
NC, is a global specialty chemicals company with leading
positions in lithium, bromine and refining catalysts. We power the
potential of companies in many of the world's largest and most
critical industries, from energy and communications to
transportation and electronics. Working side-by-side with our
customers, we develop value-added, customized solutions that make
them more competitive. Our solutions combine the finest technology
and ingredients with the knowledge and know-how of our highly
experienced and talented team of operators, scientists and
engineers.
Discovering and implementing new and better performance-based
sustainable solutions is what motivates all of us. We think beyond
business-as-usual to drive innovations that create lasting value.
Albemarle employs approximately
5,400 people and serves customers in approximately 100 countries.
We regularly post information to www.albemarle.com, including
notification of events, news, financial performance, investor
presentations and webcasts, non-GAAP reconciliations, SEC filings
and other information regarding our company, its businesses and the
markets it serves.
Forward-Looking Statements
Some of the information
presented in this press release, including, without limitation,
information related to the proposed joint venture, expected sources
of financing, plans and anticipated benefits in relation to the
proposed joint venture, and all other information relating to
matters that are not historical facts may constitute forward-
looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Actual results could differ
materially from the views expressed. Factors that could cause
actual results to differ materially from the outlook expressed or
implied in any forward-looking statement include, without
limitation: changes in economic and business conditions; changes in
priorities, financial and operating performance of our major
customers and industries and markets served by us; the timing of
orders received from customers; the gain or loss of significant
customers; competition from other manufacturers; changes in the
demand for our products or the end-user markets in which our
products are sold; the ability of the parties to successfully
negotiate definitive agreements; the availability of financing;
approval by both parties' board of directors; the satisfaction of
closing conditions, including regulatory approvals; the occurrence
of regulatory actions, proceedings, claims or litigation; and the
other factors detailed from time to time in the reports we file
with the SEC, including those described under "Risk Factors" in our
Annual Report on Form 10-K and our Quarterly Reports on Form
10-Q. These forward-looking statements speak only as of the
date of this press release. We assume no obligation to provide any
revisions to any forward-looking statements should circumstances
change, except as otherwise required by securities and other
applicable laws.
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SOURCE Albemarle Corporation