Lithium Australia Ltd (ASX:LIT, OTC:LMMFF) has started piloting its LieNA® processing technology as part of a joint development agreement (JDA) with Mineral Resources Ltd (ASX:MIN) (Mineral Resources Ltd (ASX:MIN)).
The LieNA® technology — a world-first processing technology to extract lithium from discarded mining waste — has previously been successfully tested at laboratory scale, with the current piloting program seeking to demonstrate the technology at a larger scale.
Piloting is a key activity under the JDA and follows the successful commissioning of equipment and receipt of raw material samples from MinRes.
The company has now commissioned a new pilot batch autoclave and received a raw material spodumene sample from MinRes in preparation for Australian Nuclear Science and Technology Organisation (ANSTO) piloting.
ANSTO provides specialist consultancy, process technology, process development and research services to mining and minerals processing industries. Lithium Australia has an established long-term collaborative relationship with ANSTO on the development of the LieNA® processing and other technologies.
The results from the piloting program will support the engineering study for a demonstration-scale plant, which MinRes can elect to independently fund, develop and operate. The company recently appointed Project Delivery Services as lead engineer for the demonstration plant engineering study.
Once piloting and an engineering study is completed, Lithium Australia and MinRes are expected to form a 50:50 joint venture to commercialise the LieNA® technology through a licensing model.
The JV will wholly own the LieNA® technology going forward and will license the technology to third parties at a target headline gross product royalty rate of 8%.
The first licence issued by the JV is expected to be for the demonstration plant. The JV will then issue licences to greenfield and brownfield spodumene mines, both domestically and internationally.
Significant opportunity in the lithium market
“We are excited to announce the commencement of piloting under our JDA with MinRes, marking a significant milestone in our partnership’s progress towards the formation of a JV,” said Lithium Australia CEO and managing director Simon Linge.
“The planned JV and licensing model with MinRes can capture a significant opportunity in the lithium market. LieNA® has potential application at new and existing lithium mines, with the royalty model expected to materially expand the company’s addressable market by capturing a fee on all tonnage processed utilising the LieNA® technology.
“LieNA® is an exciting opportunity for the company and we will continue to progress activities under the JDA as a top priority.”