The huge project in Queensland has been subject to years of environmental hold-ups and protests.Read more
China’s Ganfeng Lithium, the country’s second-biggest producer of the electric car raw material, has agreed to buy a 30% stake in London-listed Bacanora Minerals, which is building a lithium mine in Mexico.
Bacanora said Hong Kong-listed Ganfeng would pay £14.4m in cash for the stake at a price of 25p a share, just below its current share price of 26.75p a share.
Ganfeng, which has deals to supply lithium to Volkswagen and Tesla, will help Bacanora commission its Sonora project, in return for long-term supplies of lithium.
Peter Secker, chief executive of Bacanora, said the company now had “a clear line of sight towards commencing construction” of the project.
Shares in Glencore are down almost 3% this morning, after the miner slashed its projections for copper production in the Democratic Republic of Congo.
"A full and comprehensive business review recently commenced, targeting efficiency and recovery improvements, better product quality realisations and significant cost reductions over the remainder of 2019 and into 2020," the company said of its DRC operations.
Glencore's overall copper production was also 7% lower than in the first quarter last year, mainly due to flooding in Queensland and safety issues in Zambia.