Spectrum Resources commenced operations as a public listed mining company in August, 1983, with a variety of precious metal projects in New Zealand. At that time the outlook for most mineral commodities, with the notable exception of precious metals, was decidedly gloomy. Metal prices were depressed and demand forecasts were universally gloomy._x000D_
Against this background the company reviewed the non-traditional metals sector to try and identify a 'new' metal with an above average demand growth and market value. Lithium, a commodity with exciting new applications in storage batteries and alloys, met both criteria._x000D_
Annual world consumption of lithium is around 7000 tonnes; current prices are around $NZ40/lb for lithium metal and demand growth is projected at five to seven per cent per annum. Geothermal fluids at Wairakei and elsewhere contain anomalous amounts of lithium and in May, 1984, the Chemistry Division of DSIR was commissioned to carry out a literature survey on the possible recovery of lithium and other minerals from geothermal waters. The survey results were encouraging and the company subsequently negotiated exclusive access rights, for research purposes, to geothermal discharge fluids from the Wairakei and Kawerau geothermal fluids. Most of the subsequent investigations reported here were carried out by Chemistry Division, DSIR, under contract to the company with some assistance from the Industrial Processing Division, DSIR.