May 4 (Reuters) - Talison Lithium said reserves at its Greenbushes lithium mine in southwestern Australia more than doubled, extending the mine’s life by 10 years, and its shares rose 7 percent.
The Perth-based miner, which is the biggest producer of lithium in the world by sales, said lithium proven and probable mineral reserves jumped to 31.4 million tonnes.
The extension of the mine life to 22 years will provide customers with security of supply to meet the expected future growth in demand for lithium-ion batteries, Chief Executive Peter Oliver said in a statement.
Demand for lithium is expected to grow over the next few years, driven by lithium-ion batteries used in mobile technology, energy grid storage and electric vehicles.
There are more opportunities to increase the reserves and extend the mine life at the Greenbushes lithium mine, the company said.
The increase in reserves supports expansion of production rate to about 740,000 tonnes per annum lithium concentrate, the company said in a statement.
In March, the company had said it would double capacity at its Greenbushes lithium mine. [ID:nN02207108]
Shares of Talison, which also explores lithium at the Salares 7 lithium project in Chile, were up 13 Canadian cents at C$4.81 on Wednesday morning on the Toronto Stock Exchange. They earlier touched a high of C$5.00. (Reporting by Bhaswati Mukhopadhyay; Editing by Sriraj Kalluvila)