Lithium Mine Expansion
Liontown Resources approves $389 million lithium mine expansion in Western Australia.
Anonymous
Liontown Resources has approved a A$389 million expansion of its Kathleen Valley lithium operation in Western Australia, lifting processing capacity from about 2.8 million to 4.2 million tonnes annually. The project is expected to deliver its first additional output in FY2028 and reach an average of about 780,000 dry metric tonnes of spodumene concentrate a year from FY2030, with production topping 800,000 tonnes in FY2034. Spending is planned across FY2027–FY2029, with construction targeted for completion by mid-FY2029. Liontown says the expansion will be funded from existing cash reserves and cash flow, and additional concentrate will be sold through spot sales and potential offtake agreements. The project also advances underground development and plant upgrades, and is expected to create construction and ongoing jobs.
Key Points
1
Liontown expects the expanded operation to have a mine life of more than 20 years, with target unit operating costs of A$840–920 per dry metric tonne and an undiscounted payback period of about 2.5 years after construction.
2
The expansion will draw on the Mount Mann and Kathleen’s Corner underground mines, with Kathleen’s Corner brought forward from FY2031; mining rates are planned to rise from 2.8 million to about 4.1 million tonnes a year.
3
The A$389 million budget includes A$145 million for mining, A$137 million for processing and A$107 million for non-process infrastructure. Including expansion spending, Liontown raised its FY2027 capital expenditure guidance to A$435–495 million, from A$320–370 million.
4
Liontown is working with its power provider to add thermal, solar and battery capacity to the site’s power station.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
19
Articles
20
Reach
39
A
AnonymousAuthor
