Kwinana

Lithium Chemicals Plant

www.talisonlithium.com
Agenda

• Talison

• Greenbushes Lithium Operations

• Lithium Market

• Lithium Chemicals Plant

• Questions

2
Who Is Talison
• Shareholders
65% Chengdu Tianqi Industrial (Group)
- Customer of Talison (Greenbushes) for over 15 years
- Privately owned
- Talison investment being transferred to Tianqi’s public
company
- Largest lithium carbonate producer in China
35% China Investment Corporation
- State owned entity
- US$400 billion under management
- Global financial investor – many sectors
• History
Purchased Greenbushes operation in 2007
Talison private company 2007 – 2010
Listed TSX 2010 – 2013
Now privately owned
• Management Team
In excess of 20 years involvement with Greenbushes

3
Talison’s Operations

• Operations at Greenbushes, WA and lithium brine exploration in Chile

• Produce lithium mineral concentrates
All exported – bulk shipments through Bunbury and packaged products through
Fremantle

70% to China

30% to Europe, USA and Asia

• Supplying one third of world’s lithium demand

• Construct Lithium Chemical Plant to convert lithium minerals to lithium chemicals

4
Greenbushes Lithium Operations

• Over 100 years of mining

Tin, tantalum, lithium

• 30 years of lithium production

• Largest and highest grade lithium mineral

resource globally

• Doubled capacity in June 2012 (A$65m)

• 40+ year mine life on current reserves

• Substantial additional resources

• 160 full time employees/contractors

• Strong local community focus

• Very experienced and long serving site

management team Overview and location of Greenbushes Lithium Operations

5
Chemical Grade Plant
6
Lithium Chemicals

• Lithium Carbonate is the basic building block for Lithium based industries

Lithium Lithium
Mineral Brine

Lithium
Carbonate

Lithium Lithium Bromide Lithium Sulphate Lithium

Hydroxide Chloride

Lithium Peroxide Lithium Acetate Lithium Metal

7
 Lithium Market

Portable Electronics Transport/Mass Energy Conventional

Storage

- 30% of market
- Growth +20%pa last 10 years
More functionality = more power - Minimal consumption at present
- - 70% of market
Continue to grow at similar levels - Strong growth forecast from 2016
- - Growth ~ 6.5%pa last 10 years

• Growth drivers – demand for portable power and clean energy (communications, technology, power tools, vehicles & mass
energy storage)

• Forecast Growth ~10%pa – (15,000tpa)

8
Proposed Lithium Chemicals Plant

• Downstream processing/value adding

• Developing project for over 3 years – Proposed Site

A$8m invested to date

• 20,000tpa lithium carbonate

• Workforce
Construction ~400

Operations ~90

• Capital cost ~$250m

• Location
Adjacent to Wesfarmers LPG operation

Close to power, water, gas, chemicals

9
Schematic Flowsheet

Sulphuric Acid Water

Mineral Calcination Sulphation Leach

Concentrate

1,080degC 250degC

Limestone TAS/Gypsum
Purification Filtration
Caustic Soda

Lithium Carbonate Lithium Carbonate

Soda Ash Product
Crystallisation

Sodium Sulphate
Sodium Sulphate
Crystallisation

10
Preliminary Site Layout

11
Lithium Chemicals Plant Products

• Lithium carbonate
Crystallised pure chemical – very fine white powder >99.5% Li2CO3

Packaged in 20kg or bulk bags on pallets in containers, exported from Fremantle port

• Sodium sulphate
Crystallised pure chemical – fine white powder >99% Na2SO4
Packaged in bulk bags on pallets in containers, exported from Fremantle port
Major application in detergent production, possible major market in Indonesia
• By-products
Researching applications for TAS and gypsum
Opportunities for TAS in local brick/concrete products
Opportunities for gypsum in soil conditioning or as mixture with TAS

12
Key Considerations of Project

• Feed stock
160,000 tonnes per annum / 7 trucks per day / 20% of Greenbushes’ capacity

• Chemicals
Local WA supply of most chemicals
Soda ash may be imported

• Lithium carbonate characteristics

Described as moderate toxicity, mild irritant, non flammable, stable, non carcinogenic
Normal chemical precautions for handling and cleanup
- Personal protective equipment – gloves, clothing, eye protection, dust mask/respirator

- Contain spillage and dry cleanup

Medically prescribed in small quantities for management of depression and mood

disorders

13
Environmental Considerations

• Waste products - minimal

Solid – research work on use of residues/by-products in local construction materials
Liquid – water from cooling towers
Off-Gas – cleaned before discharge

• Environmental

Air dispersion modelling showed minimal impact

Calciner offgas
- Bag house for dust removal
- Mainly products from burning natural gas

Off gases scrubbed

- Sulphation process and process tanks where required
Dust collection equipment throughout plant
Plant design to minimise surface dust from site
Collection and reuse of surface water
Noise levels well below regulated levels
14
Why Kwinana

Talison Kwinana Community

 Better utilisation of resource  New industry 

 Access to services, utilities and  Synergies with other industries 

chemicals
 
Skilled workforce  Employment opportunities

 
Understand WA industry environment  Experienced WA operator

 
Long term location  Permanent presence

 Go further downstream  Future employment opportunities 

15
Project Status

• Finalising engineering study

• Discussed with stakeholders (Kwinana and Rockingham councils, DER, DMP, DSD, EPA,
Water Corporation)

• Negotiating utilities supply (power, water, gas)

• Preparing environmental approvals application

• Option to lease land secured

• On site geotechnical/environmental assessments to commence soon

• Safety Management Plan in place

• Investment decision – mid 2014

• Construction time 3 years

16
Thank you
Questions?

17