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Investors wary of more cost blowouts on Wesfarmers lithium deal

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Wesfarmers has sparked concerns among some investors about cost blowouts associated with its push into battery metals mining and processing after taking a big step forward in its $776 million takeover of lithium play Kidman Resources.

The Rob Scott-led Wesfarmers is on track to complete the takeover by September but on completing due diligence it has added $100 million to the capital costs it will cover for the development of the Mount Holland lithium mine in Western Australia and a lithium hydroxide plant.

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Brad Thompson writes across business and politics from Western Australia for The Australian Financial Review. Brad is based in our Perth bureau. Connect with Brad on Twitter. Email Brad at brad.thompson@afr.com

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    Original URL: https://www.afr.com/companies/mining/investors-wary-of-more-cost-blowouts-on-wesfarmers-lithium-deal-20190523-p51qc3