Australian mining company Alchemy Resources said on Monday it has signed an agreement for a Japanese government agency to acquire up to 51% of its Roe Hills property in Western Australia by paying up to A$6 million ($4.15 million ) financed in exploration costs.
Alchemy Resources will manage the project for the duration of the partnership. Once Japanese authority JOGMEC acquires its share of the properties, the two companies will form a joint venture, the company said in a statement.
The Roe Hills properties are part of the diversified mining company’s Karonie lithium and gold project.
The agreement comes at a time when prices for lithium and nickel, needed for electric vehicle batteries, are falling globally as demand for electric vehicles is lower than expected.
The Japan Metals and Energy Safety Organization (JOGMEC) is tasked with ensuring Japan’s stable supply of raw materials as concerns grow over critical mineral shortages.
As resource-rich Australia seeks investment from allies in green energy projects, the deal is in line with efforts to support minerals critical to the energy transition that are at risk of supply chain disruptions.
($1 = 1.4457 Australian dollars)
