Wesfarmers is working with Kidman towards developing a large-scale, long-life and high-grade lithium hydroxide project in Western Australia.
Kidman Resources Mining News
Wesfarmers' bid for Australia's Kidman Resources undervalues the lithium miner, analysts said on Friday.
The offer of A$1.90 per share represents a premium of 47.3% to Kidman's last closing price.
Kidman will supply 12,000 tonnes of lithium hydroxide a year to the diversified chemicals company for 10 years.
The settlement unlocks payments by SQM that had been on ice during the dispute, and paves the way for development to get back on track
The deal is for an initial three-year term on a "fixed-price take-or-pay basis."