CHARLOTTE, N.C., July 19, 2023 /PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a global leader in providing essential elements for mobility, energy, connectivity, and health, has agreed to amend the terms of the transaction signed earlier this year with Mineral Resources Limited (ASX: MIN.AX).
The amended agreements are intended to further simplify commercial arrangements entered into by the parties in February of this year. Pending regulatory approvals, the amended arrangements are intended to provide greater strategic opportunities for each company based on their global operations and the evolving lithium market.
Under the new agreements, Albemarle will take 100% ownership of the Kemerton lithium hydroxide processing facility in Australia that is currently jointly owned with Mineral Resources through the MARBL joint venture. Albemarle will also retain full ownership of its Qinzhou and Meishan lithium processing facilities in China.
Other key aspects of the February 2023 agreement remain in effect, including the April 1, 2022, economic effective date (EED) and joint ownership of the Wodgina mine, with Albemarle and Mineral Resources to each own a 50% share upon closing and Mineral Resources serving as the operator.
Albemarle CEO Kent Masters said the agreement positions each company to better align its planned capital investments and assets.
"Albemarle continues to rapidly expand its Energy Storage business. Construction of the Meishan lithium hydroxide processing plant is progressing well, with completion now expected in early 2024. We also recently announced an expansion at the Kemerton lithium hydroxide processing facility, with construction about to begin for our 100% owned processing trains three and four."
Upon closing, Albemarle expects to pay Mineral Resources US$380 - 400 million which includes net consideration for the remaining 15% ownership of Kemerton as well as EED settlement adjustments. Actual settlement adjustments will depend on the date of close.
The parties anticipate closing the amended arrangements later this year, pending regulatory approval in Australia.
About Albemarle
Albemarle Corporation (NYSE: ALB) leads the world in transforming essential resources into critical ingredients for mobility, energy, connectivity, and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. A reliable and high-quality global supply of lithium and bromine allows us to deliver advanced solutions for our customers. Learn more about how the people of Albemarle are enabling a more resilient world at albemarle.com and on Twitter @AlbemarleCorp.
Albemarle regularly posts information to our website, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, SEC filings and other information regarding the company, its businesses, and the markets we serve.
Forward-Looking Statements
This press release contains statements concerning our expectations, anticipations, intentions, beliefs, or strategies regarding the future, which constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions and events to differ materially from those anticipated, often contain words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "would," "will" and variations of such words and similar expressions. Forward-looking statements may include, without limitation, statements regarding the restructuring of the MARBL joint venture, the receipt of regulatory approval in Australia and the closing of the amended arrangements, the benefits and strategic opportunities associated with such amended arrangements, and all other information relating to matters that are not historical facts. 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; adverse changes in liquidity or financial or operating performance; changes in the demand for our products or the end-user markets in which our products are sold; fluctuations in lithium market pricing; changes in laws and government regulation; and the other factors detailed in the reports we file with the SEC, including those described under "Risk Factors" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on the investor section of our website (investors.albemarle.com). 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