Jump to content

WES - WESFARMERS LIMITED


ShareCafe

Recommended Posts

Wesfarmers, its chief executive Rob Scott and chief financial officer Anthony Gianotti, with a band of former private equity dealmakers in their corner, [is seeking] to put their stamp on the storied Australian company and fight for its conglomerate structure.

 

Scott took the CEO's job in November 2017, at a time when Wesfarmers' long history as a conglomerate was under question. He was arguably considered an outsider for the position, ranking behind then executive director Terry Bowen and Bunnings boss John Gillam. His chairman, Michael Chaney, told investors he chose Scott for his "capability to deliver improved business performance and to lead change through building great teams".

 

At the time, Wesfarmers' portfolio was heavily skewed towards retailers Coles and Bunnings Australia and New Zealand. Together the two businesses accounted for about three-quarters of the company's earnings in the 2017 financial year, and more soon after when Wesfarmers' coal assets were sold.

 

Accordingly, Wesfarmers had become viewed by the investment community as a retailer. It was covered by retail sector analysts at funds managers and stockbrokers, and there were some questions about whether it still had a licence to operate as a conglomerate.

 

Lynas is Scott's third big move since taking the reins, and was made possible only by the first two. All three appear to underpin a strong belief in the conglomerate structure.

 

The first was spinning-off supermarket giant Coles, which was announced last May and took place in November. Coles had become the albatross around Wesfarmers' neck; it was big, mature, low-growth and a handbrake on the company's closely watched return on capital.

 

Coles returned 9.7 per cent on capital invested in the 2017 financial year, while Wesfarmers' local Bunnings franchise returned 41.8 per cent, its department stores returned 24.1 per cent, Officeworks 14.7 per cent and its industrials business 27 per cent.

 

Divesting Coles via a demerger was the sort of bold call Wesfarmers had been renowned for. It had previously owned large and profitable insurance, agriculture, transport and mining businesses, all of which were offloaded for profits. Demerging Coles would release about $12 billion of capital and allow the company to reinvest into smaller, faster-growing and higher-returning assets.

 

The second move was selling Wesfarmers' Bunnings UK and Ireland business (BUKI) to end what the company itself called a "disappointing investment". Scott quickly said Wesfarmers had failed at BUKI on a number of levels âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ management assumptions were too optimistic, post acquisition execution was poor and it underestimated the importance of local management âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and cut the cord after a review.

 

The first two initiatives were asset sales âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ both easier than buying assets at a time when Australia's listed market is trading at 16-times profit and institutional investors are under pressure to deliver strong quarterly and half-yearly numbers.

 

But any conglomerate that is selling assets also needs to be developing its own or buying. And with more than $10 billion at its disposal, Scott had Wesfarmers' large corporate development team hunting for opportunities.

 

Scott, a former investment banker, previously ran Wesfarmers' industrials, insurance and financial services businesses, and worked in its in-house dealmaking unit, corporate development.

 

He had told investment bankers he respected the company's conglomerate roots and had every intention of keeping it going.

 

He also had some well-regarded former private equity dealmakers to help reshape and restock the portfolio, including former KKR Australia executive Ed Bostock as head of business development, ex-Virgin Group co-CEO and Goldman Sachs alumnus David Baxby as industrials boss, and former Catalyst Investment Managers operative Aaron Hood.

 

So bankers stepped up pitching to Wesfarmers' Scott and his wider team. Bankers say they were never given guidance on Wesfarmers' preferred investment size or sector, but knew Scott was keen on a portfolio-style approach that promised a handful of deals over a few years rather than one big bet like Coles. There are stories about all sorts of ideas being pitched âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ some given more thought than others.

 

Decarbonisation play

 

One of those ideas was rare earths company Lynas Corp, which owns the Mount Weld mine in Western Australia and processes the mine's ore in Malaysia.

https://www.afr.com/business/manufacturing/...20190331-p519aa

 

 

Link to comment
Share on other sites

  • Replies 227
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Posted Images

.....

 

 

 

when it came to replacing outgoing CEO Richard Goyder. Photo: Bohdan as a conglomerate was under question. He was arguably considered an he Coles and Bunnings Australia and New Zealand. Together the two Menu

 

Advertisement

Business

Manufacturing

Due diligence

What Lynas says about Wesfarmers' Rob Scott and his M&A war chest

Anthony Macdonald

Anthony MacdonaldStreet Talk Editor

Apr 1, 2019 âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€šÃ‚ 12.15am

 

Save

 

Share

Six weeks ago, Wesfarmers boss Rob Scott sent a clear warning to rare earths miner and processor Lynas Corp.

 

Scott's Wesfarmers, with a $10 billion-plus acquisition war chest and mandate to invest, had been in talks with Lynas about a processing joint venture.

 

 

Trying to buy Lynas Corporation is the third big call Wesfarmers boss CEO Rob Scott has made since moving into the top job. Richard Wainwright

 

While the talks were private, they were also prolonged. And Scott and his team's position had changed materially.

 

No longer were they just interested in a joint venture. They thought Lynas could be a valuable part of the 105-year-old Perth-based company, a conglomerate with deep roots in chemicals and processing, but now making 80 per cent of its earnings selling hardware, clothing, homewares and the like.

 

So it is understood Scott notified his Lynas counterparts that his interest had outgrown a joint venture. Wesfarmers was now considering a whole-of-company takeover.

 

RELATED QUOTES

WESWesfarmers

$34.65

0.00 (0.00%)

 

1 year

1 day

Apr 18

Jul 18

Mar 19

29.000

31.000

33.000

35.000

37.000

Updated: Apr 1, 2019 âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€šÃ‚ 9.53am

View WES related articles

LYCLynas Corporation

$2.10

+0.01 (+0.48%)

 

 

Advertisement

Fast forward to mid-March and Scott, true to his word, submitted a $1.5 billion takeover proposal.

 

Lynas sat on the bid for one week. Wesfarmers, perhaps worried Lynas was in talks with another suitor or the Malaysian government, ran out of patience and disclosed the offer last Tuesday.

 

The news was met with great surprise. Wesfarmers âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ covered by retail sector analysts as the owner of hardware chain Bunnings and discount department store Kmart and the biggest member of the ASX200 Retailing Index âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ was trying to buy a rare earths miner.

 

Lynas acted as surprised as anyone. CEO Amanda Lacaze called it a "thought bubble" and swiftly dismissed it as "an indicative, sort-of proposal that simply is not in our view complete, and it is so highly conditional there is simply nothing there to engage with".

 

 

 

 

There was little mention about Scott's warning six weeks earlier.

 

And so round one of the M&A battle went to Lynas. A firm "no" is often an easy assured victory for a target company in the short term; it's only when shareholders start questioning viability of medium and longer-term visions that pressure can start to build.

 

So the battle is far from over. Wesfarmers, albeit somewhat miffed by Lynas' reaction last week, has picked its target and isn't expected to go away easily.

 

 

Advertisement

It's popcorn time for Lynas shareholders.

 

What Lynas says about Wesfarmers

But behind the M&A games, the episode speaks volumes about Wesfarmers, its chief executive Rob Scott and chief financial officer Anthony Gianotti. It shows how the pair, with a band of former private equity dealmakers in their corner, seek to put their stamp on the storied Australian company and fight for its conglomerate structure.

 

 

Wesfarmers chairman Michael Chaney had a handful of internal choices when it came to replacing outgoing CEO Richard Goyder. Photo: Bohdan Warchomij

 

Scott took the CEO's job in November 2017, at a time when Wesfarmers' long history as a conglomerate was under question. He was arguably considered an outsider for the position, ranking behind then executive director Terry Bowen and Bunnings boss John Gillam. His chairman, Michael Chaney, told investors he chose Scott for his "capability to deliver improved business performance and to lead change through building great teams".

 

At the time, Wesfarmers' portfolio was heavily skewed towards retailers Coles and Bunnings Australia and New Zealand. Together the two businesses accounted for about three-quarters of the company's earnings in the 2017 financial year, and more soon after when Wesfarmers' coal assets were sold.

 

Accordingly, Wesfarmers had become viewed by the investment community as a retailer. It was covered by retail sector analysts at funds managers and stockbrokers, and there were some questions about whether it still had a licence to operate as a conglomerate.

 

Lynas is Scott's third big move since taking the reins, and was made possible only by the first two. All three appear to underpin a strong belief in the conglomerate structure.

 

 

Advertisement

Offloading the albatross

The first was spinning-off supermarket giant Coles, which was announced last May and took place in November. Coles had become the albatross around Wesfarmers' neck; it was big, mature, low-growth and a handbrake on the company's closely watched return on capital.

 

Coles returned 9.7 per cent on capital invested in the 2017 financial year, while Wesfarmers' local Bunnings franchise returned 41.8 per cent, its department stores returned 24.1 per cent, Officeworks 14.7 per cent and its industrials business 27 per cent.

 

Divesting Coles via a demerger was the sort of bold call Wesfarmers had been renowned for. It had previously owned large and profitable insurance, agriculture, transport and mining businesses, all of which were offloaded for profits. Demerging Coles would release about $12 billion of capital and allow the company to reinvest into smaller, faster-growing and higher-returning assets.

 

Cutting the cord

The second move was selling Wesfarmers' Bunnings UK and Ireland business (BUKI) to end what the company itself called a "disappointing investment". Scott quickly said Wesfarmers had failed at BUKI on a number of levels âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ management assumptions were too optimistic, post acquisition execution was poor and it underestimated the importance of local management âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and cut the cord after a review.

 

The first two initiatives were asset sales âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ both easier than buying assets at a time when Australia's listed market is trading at 16-times profit and institutional investors are under pressure to deliver strong quarterly and half-yearly numbers.

 

 

Advertisement

But any conglomerate that is selling assets also needs to be developing its own or buying. And with more than $10 billion at its disposal, Scott had Wesfarmers' large corporate development team hunting for opportunities.

 

Scott, a former investment banker, previously ran Wesfarmers' industrials, insurance and financial services businesses, and worked in its in-house dealmaking unit, corporate development.

 

He had told investment bankers he respected the company's conglomerate roots and had every intention of keeping it going.

 

He also had some well-regarded former private equity dealmakers to help reshape and restock the portfolio, including former KKR Australia executive Ed Bostock as head of business development, ex-Virgin Group co-CEO and Goldman Sachs alumnus David Baxby as industrials boss, and former Catalyst Investment Managers operative Aaron Hood.

 

So bankers stepped up pitching to Wesfarmers' Scott and his wider team. Bankers say they were never given guidance on Wesfarmers' preferred investment size or sector, but knew Scott was keen on a portfolio-style approach that promised a handful of deals over a few years rather than one big bet like Coles. There are stories about all sorts of ideas being pitched âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ some given more thought than others.

 

Decarbonisation play

One of those ideas was rare earths company Lynas Corp, which owns the Mount Weld mine in Western Australia and processes the mine's ore in Malaysia.

 

 

Lynas, run by Amanda Lacaze, sends ore from its mine in Western Australia and to a processing plant in Malaysia. Ian Teh

 

 

Advertisement

Lynas primarily mines for neodymium and praseodymium, together called NdPr, which are key ingredients in creating the most powerful magnets on the planet. The magnets can be used in batteries for electric vehicles and wind turbines, in particular. And the more powerful the magnets, the more powerful the batteries and the more powerful and valuable the vehicle or turbine.

 

Overarching this, Lynas was pitched as a fit for Wesfarmers' theory around decarbonisation of the electricity sector. The company had earlier tried to buy a stake in a lithium mine in the Pilbara as part of the thesis, and was known to be scouting for opportunities.

 

It's also much different to Bunnings and Kmart âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ the two biggest earners in Wesfarmers' portfolio âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ but seen as a good fit for its chemicals, energy and fertilisers unit, run by Wesfarmers veteran Ian Hansen.

 

A lot of the value in Lynas âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and other rare earths companies âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ is in the processing of the ore. The company pays a contractor to do the mining at its Western Australian mine, but oversees its own processing plant in Malaysia.

 

Wesfarmers first approached Lynas last year about a joint venture, before upgrading its interest to a potential takeover. Wesfarmers thought its big balance sheet and conglomerate structure may shelter Lynas for the ups and downs it experiences thanks to political environments and commodity markets.

 

The company and its advisers âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ boutique Highbury Partnership, investment bank UBS and law firm Herbert Smith Freehills âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ discussed the best form of approach at length. Wesfarmers could go in all guns blazing, or try to keep Lynas on side with a more friendly approach.

 

In the end, they adopted what looked and felt like something KKR or another big private equity firm would do: make a confidential and friendly approach, ask for due diligence and make it subject to regulatory approvals and a scheme of arrangement.

 

Lynas didn't take the bait, Wesfarmers disclosed the offer and Lynas quickly rejected it.

 

Wesfarmers will be watching closely before it decides what to do next. The rare earths company has issues of its own to sort out âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ it was only one month ago auditor EY flagged the company's ability to continue as a going concern âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and can't afford to be distracted by an outbreak of M&A activity.

 

What we know for sure is Scott is out to have investors and analysts back to thinking about Wesfarmers as both a conglomerate and a nimble investor, rather than a lumbering retailer.

 

And and it underestimated the importance of local management âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and cut the cord after a review.

 

The first two initiatives were asset sales âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ both easier than buying assets at a time when Australia's listed market is trading at 16-times profit and

Scott, a former investment banker, previously ran Wesfarmers' industrials, insurance and financial services businesses, and worked in its in-house dealmaking unit, corporatewell-regarded former private equity dealmakers to help reshape and restock the portfolio, including former KKR Australia executive Ed Bostock as head of business development, ex-Virgin Group co-CEO and Goldman Sachs alumnus David Baxby as industrials boss, and former Catalyst Investment Managers operative Aaron Hood.

 

So bankers stepped up pitching to Wesfarmers' Scott and his wider team. Bankers say they were never given guidance on Wesfarmers' preferred investment size or sector, but knew Scott was keen on a portfolio-style approach that promised a handful of deals over a few years rather than one big bet like Coles. valuable the vehicle or turbine.

 

Overarching this, Lynas was pitched as a fit for Wesfarmers' theory around decarbonisation of the electricity sector. The company had earlier tried to buy a stake in a lithium mine in the Pilbara as part of the thesis, and was known to be scouting for opportunities.

 

It's also much different to Bunnings and Kmart âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ the two biggest earners in Wesfarmers' portfolio âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ but seen as a good fit for its chemicals, energy and fertilisers unit, run by Wesfarmers veteran Ian Hansen.

 

A lot of the value in Lynas âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and other rare earths companies âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ is in the processing of the ore. The company pays a contractor to do the mining at its Western Australian mine, but oversees its own processing plant in Malaysia.

 

Wesfarmers first approached Lynas last year about a joint venture, before upgrading its interest to a potential takeover. Wesfarmers thought its big balance sheet and conglomerate structure may shelter Lynas for the ups and downs it experiences thanks to political environments and commodity markets.

 

The company and its advisers âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ boutique Highbury Partnership, investment bank UBS and law firm Herbert Smith Freehills âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ discussed the best form of approach at length. Wesfarmers could go in all guns blazing, or try to keep Lynas on side with a more friendly approach.

 

In the end, they adopted what looked and felt like something KKR or another big private equity firm would do: make a confidential and friendly approach, ask for due diligence and make it subject to regulatory approvals and a scheme of arrangement.

 

Lynas didn't take the bait, Wesfarmers disclosed the offer and Lynas quickly rejected it.

 

Wesfarmers will be watching closely before it decides what to do next. The rare earths company has issues of its own to sort out âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ it was only one month ago auditor EY flagged the company's ability to continue as a going concern âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and can't afford to be distracted by an outbreak of M&A activity.

 

What we know for sure is Scott is out to have investors and analysts back to thinking about Wesfarmers as both a conglomerate and a nimble investor, rather than a lumbering retailer.

 

And after popping up at Lynas, we know for sure that its dealmakers are serious about the battery/chemicals minerals game. The question is what other outside-the-box ideas are on its hit list.

Link to comment
Share on other sites

Interesting Nipper

 

I dont recall this

 

Overarching this, Lynas was pitched as a fit for Wesfarmers' theory around decarbonisation of the electricity sector. The company had earlier tried to buy a stake in a lithium mine in the Pilbara as part of the thesis, and was known to be scouting for opportunities.

 

Which Lithium mine did they make an offer on ??

Link to comment
Share on other sites

Maybe this

 

Although if you make a bid - presumably the market should be told

 

https://www.theaustralian.com.au/bu...m/new...a1695f38a8a625e

 

Market speculation links Wesfarmers to lithium

 

 

As Wesfarmers sets Coles supermarkets adrift, the market is questioning what is the next move for the Perth-based conglomerate. Some believe its focus remains on chemicals.

 

Chief executive Rob Scott has given little away about where the company may outlay large sums of cash for an acquisition, but some chatter in the market suggests it has cast its eye over Mineral Resourcesâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ Wodgina lithium project.

 

It may sound far-fetched, but apparently Wesfarmers, which now counts some of the countryâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s best private equity deal-makers within its ranks, is said to be conscious of deals in the lithium space.

Link to comment
Share on other sites

  • 1 month later...
Kidman Transaction Rationale

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Global uptake of electric vehicles presents an attractive opportunity

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Investment in a globally significant, high-grade lithium project

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Opportunity to leverage Wesfarmersâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ expertise & capabilities in chemical processing

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Partnership with an industry leader

- the "chemical processing" bit is interesting .... may yet get a homegrown upstream component.

Link to comment
Share on other sites

Not up to speed on the hard rock lithium players but just on the chemical processing idea Orocobre is working with Toyota Tsusho - a trading firm in the Toyota stable - to build a LiOH processing plant in Japan (near the crippled nuclear powerstation) and Pilbara Minerals seems to be looking to build a LiOH plant by way of a JV with POSCO in Korea.

 

Both LiOH plants are being built amongst clusters of businesses working on battery production. Orocobre's plant, which they will hold 75% of but only need to put in US$6.8m (total cost is about US$91m and most of it is borrowed at mate's rates of less than 1% interest), will be built near a cathode manufacturer and there is a planned battery factory there as well (I'm guessing it may involve the JV between Panasonic and Toyota that was recently formed to build a series of battery factories).

 

I'm a great fan of Michael Porter's theory on clustering of related businesses giving a competitive advantage. Were Kidman to build a LiOH plant in WA it would stick out like a shag on a rock. Australia has no car industry, we forfeited our advantage in solar panels, and Perth is a long way from even the east coast research and development clusters. I don't know enough about Westfarmers as to whether they have much inhouse expertise with lithium processing. But I would think that SQM, a lithium big-hitter, would want to play safe with locating any LiOH plant near existing clusters of excellence. But I could be way off track here ...

 

Link to comment
Share on other sites

WA has been talking about building their own "Lithium Valley" ..... as with most thought bubbles, still just that.

 

A couple of points - don't incorporate it in a Multi Function Polis, or connect it to a Very Fast Train. . (or tell Clive Palmer)

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...