Nemaska, Hanwa sign lithium deal
Published: Thursday, 28 June 2018
Nemaska will begin to ship lithium spodumene concentrate in Q3 next year, after completing the ramp-up of its Whabouchi mine in Quebec.
Canada-based Nemaska Lithium has reached an agreement to
supply spodumene Li2O concentrate to Japan-based Hanwa, which
will be acting as agent for China’s General
Nemaska’s spodumene Li2O concentrate will be
sold on a take-or-pay basis to a market price-based formula at
the time of delivery. This will take into account the current
market price of $800-1,000 per tonne, the company told
Industrial Minerals at the end of May.
Industrial Minerals assessed the price of spodumene, min
5-6% Li2O, cif China, was $900-970 per tonne on April 25, and
$855-925 per tonne on an fob Australia basis.
Nemaska plans to ship lithium spodumene concentrate,
typically min 5-6%, beginning in the third quarter of 2019, it
told Industrial Minerals. To achieve this, in the third quarter
of this year it will start to ramp up the operations of its
mine in Whabouchi, in the James Bay area of the Canadian
province of Quebec.
Selling Whabouchi’s spodumene will enable
Nemaska to generate revenue while the company is working to
bring online its electrochemical plant in Shawinigan, also in
Quebec. It intends to complete this by June 2020.
During the interim period, to generate revenue from the sale
of its spodumene concentrate, Nemaska has said that it could
export almost 213,000 tonnes per year once the mine is fully
"Our business plan remains to be vertically integrated and
to sell lithium hydroxide and lithium carbonate from our
electrochemical plant in Shawinigan," president and chief
executive officer Guy Bourassa said.
"However, given that the Whabouchi mine will be in
production about a year before the electrochemical plant is
ready to be commissioned, we decided to be opportunistic and to
sell spodumene concentrate in the interim, effectively enabling
us to generate revenue by the last quarter of 2019," he