Global lithium giant SQM is on-board in the Territory as interest grows

One of the world’s largest lithium players has its sights set on the NT. Read what they’re doing.

A Spodumene ore stockpile. Photo: Colin Murty/The Australian

Not put-off by the spectacular demise of Core’s lithium development at Finniss, southwest of Darwin, one of the world’s largest lithium producers is investing in a potential new Northern Territory lithium prospect.

Chilean-based Sociedad Quimica y Minera De Chile, through its subsidiary SQM Australia, is looking to partner with iTech Minerals to develop Reynolds Range project 90, about 230km northwest of Alice Springs.

iTech is searching primarily for copper and gold but the SQM partnership opens up the prospect of searching for lithium in the highly mineralised Territory precinct.

According to the terms of agreement posted on the ASX late last year, one of the world’s largest lithium chemicals producers will have access to a new lithium pegmatite discovery in the Northern Territory.

Subject to a short due diligence period, SQM could earn into the lithium mineral rights on the Reynolds Range lithium project while iTech would retain 100 per cent rights to all other minerals including the copper and gold.

First shipment of Core Lithium Grant's mine spodumene concentrate being loaded at Darwin Port in May 2023.

Along the way, iTech and SQM would create a technical committee to oversee the development of the project with equal representation between both companies.

iTech managing director Mike Schwarz said the deposit lent itself to involvement by one of the world’s largest lithium players.

“The Reynolds Range lithium project is a new lithium pegmatite discovery in the Northern Territory,” Mr Schwarz said.

“With high-grade rock chips of up to 8 per cent ... and known pegmatites outcropping over the entire 50km tenement package, iTech believes it will take the technical capability and financial resources of one of the world’s largest lithium chemical producers, like SQM, to fully capture the value of this exciting new project.

“With SQM initially funding and managing all aspects of lithium exploration and development, iTech can focus on its resources on exploration of the copper and gold potential of the Reynolds Range tenement package of which it retains 100 per cent ownership.

“iTech looks forward to a valuable and productive working relationship with SQM as we explore this exciting new region side-by-side.”

iTech is a South Australian-based ASX listed mineral exploration company in search of battery materials and critical minerals within a portfolio of 100 per cent Australian-owned projects.

SQM is listed on the New York and Santiago stock exchanges.

Core’s Finniss lithium mine enjoyed a brief but spectacular run, opening in mid 2022 to a surging share price before tanking spectacularly when China’s dominance of global lithium supplies took hold.

Core Lithium hopes to re-open its Finniss operation within three years.

The company’s share price on Tuesday was 10 cents.

Originally published as Global lithium giant SQM is on-board in the Territory as interest grows