Lithium

AIMR 2008
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Lithium

Lithium (Li) is recovered from the mineral spodumene (Li2O.Al2O3.4SiO2) and lithium-rich brines. It is used in a range of products such as ceramics, glass, batteries and pharmaceuticals. Lithium use has expanded significantly in recent years due to increasing use in rechargeable batteries in portable electronic devices and in batteries and electric motors for hybrid and electric cars.

Lithium produced from the Greenbushes mine in south west WA has been used in the production of specialty glasses, glass bottles, ceramics and ceramic glazes. Its ore also is a feedstock for the production of lithium carbonate in the chemical industry.

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Resources

EDR in 2007 was reduced by 1 kt to 169 kt of lithium. All of Australia's lithium resources are in the Greenbushes spodumene deposit in WA. It is the world's largest and highest grade spodumene deposit. All of lithium EDR is accessible for mining. Approximately 85% of EDR comprises JORC Code reserves as reported by industry.

In 2007, subeconomic resources total 79 kt, which account for 31% of total demonstrated resources. Paramarginal and submarginal resources were 54 kt and 25 kt respectively. Inferred resources amounted to 7 kt. Western Australia accounts for all the subeconomic and inferred resources.

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Exploration

There are no statistics available on exploration expenditure for lithium. There are only a few companies exploring for lithium in WA and Qld.

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Production

In 2007, the Talison Minerals' Greenbushes operation produced 192,277 t of spodumene concentrate, which contains 4.8% to 7.5% Li2O.

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World Resources

Based on USGS estimates for 2007, which have been modified Geoscience Australia for Australia's resources, world resources totalled 4269 kt, although the resource data does not include some important producing countries such as Argentina and Russia. According to the USGS, of the total world lithium resources Chile holds approximately 3000 kt, followed by China with 540 kt, Brazil with 190 kt and Canada with 180 kt.

Lithium resources occur in two distinct categories, lithium minerals and lithium-rich brines. Canada, China and Australia have the most significant resources of lithium minerals while lithium brine resources, which is the dominant feedstock for lithium carbonate production, is produced predominantly by Chile, followed by Argentina, China, Russia and the USA.

World production in 2007 was estimated by the USGS to be 25 kt of contained lithium, excluding the USA production for commercial reasons. Based on the USGS data, Chile produced 9.4 kt to remain the world's largest producer in 2007 followed by Australia, China and Canada.

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Industry Developments

The demand for lithium is growing as a result of the increased use of rechargeable batteries in electronic devices and the development of lithium-ion batteries and electric motors for hybrid and electric cars.

In August 2007, the assets of Sons of Gwalia were sold to a consortium of five private equity funds which led to the formation of Talison Minerals Pty Ltd comprising the Sons of Gwalia Ltd assets, including the Greenbushes and Wodgina mines and exploration leases near Wodgina mine in WA. Wodgina is an open pit mine with a primary processing plant. The Greenbushes operation includes a lithium plant along with an open pit and underground mines, primary and secondary tantalum processing plants and a tin smelter.

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