11/03/2019

Gilbert + Tobin has advised Talison Lithium Australia Pty Ltd (Talison) in a dispute with Global Advanced Metals Greenbushes Pty Ltd (GAM), with the two companies settling on a revised commercial arrangement for the operation of the Greenbushes mine, about 250km south of Perth.

Talison’s recovery of the metal tantalum for GAM has occurred as part of the extraction of lithium from the Greenbushes ore body for many years in an existing tantalum recovery circuit. As part of the settlement with GAM, this process will include the installation and operation of a tantalum recovery circuit in a new chemical grade lithium processing plant (CGP2) which is currently under construction.

While the terms of the settlement remain confidential, the resolution will not have any impact on Talison’s plans to expand production at the Greenbushes mine (which currently operates as the largest hard rock lithium mine in the world).

G+T advised Talison in relation to the litigation and strategic aspects of the dispute, in addition to negotiating and drafting the revised commercial arrangements for Greenbushes that formed part of the settlement with GAM.

The Greenbushes expansion will ensure sufficient quantities of spodumene are available to feed the lithium hydroxide plants being constructed in Western Australia by Talison’s shareholders – Tianqi Lithium Corporation and Albemarle Corporation, with reported investment totalling circa $1.7 billion.

G+T Energy + Resources Partner Justin Little and Disputes + Investigations Partner Marshall McKenna led the matter with support from senior associates Patrick Tydde and Guy Greer along with lawyers Arabella Tole, Pearl Martin, Jamie Ammendolea and Amelia Arndt.

Justin Little commented that "while we were always confident in our assessment of Talison’s legal position, there was a lot riding on it for both the expansion of the Greenbushes mine and the development of the downstream hydroxide plants here in Western Australia. Ultimately, it’s a great outcome for Talison, its shareholders and all other stakeholders in the project”.

Gilbert + Tobin – Perth office

Independent corporate law firm Gilbert + Tobin’s Perth team are leading advisors to the energy and resources sectors – through the full lifecycle from junior explorers to multi-national, blue-chip corporates.

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