Alliance maintains strong Bald Hill performance

Alliance Mineral Assets has continued to build output at the Bald Hill lithium and tantalum mine in Western Australia, producing 38,717 wet metric tonnes of lithium concentrate in the June quarter.

The quarterly result is slightly up on the previous period’s 38,291 tonnes, representing an increase of three per cent in contained lithia. It takes Alliance’s half-year concentrate production to 77,008 wet metric tonnes at a 6.15 per cent cutoff rate.

Of this figure, 18,669 dry metric tonnes were shipped to Chinese offtake partner Jiangxi Bao Jiang Lithium for 58,063 tonnes in the past half year.

Jiangxi and Alliance have a contract in place to provide the former with 98,000-118,000 tonnes of concentrate in 2019, including product from shipments delivered in 2018. 

Alliance has a memorandum of understanding (MoU) with Jiangxi Special Motor Company to develop a joint venture (JV) focused on the production and sale of lithium hydroxide for battery production.

Its concentrate requirements for the JV in 2019 and 2020 are expected to represent around 20 per cent of Bald Hill production.

The Bald Hill project has a mineral resource of 26.5 million tonnes at 0.96 per cent lithium and 149 parts per million of tantalum at a 0.5 per cent cut off. This translates to 225,200 tonnes of lithium and 8.6 million pounds of tantalum.

Galaxy Resources became Alliance’s largest shareholder in May 2019 when it acquired $22.5 million of shares in a $32.5 million raising, equivalent to a 12.22 per cent stake in the company.

Jiangxi is also a significant investor in Alliance, holding 6.42 per cent of the company’s shares.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.