 |
| Kathleen Valley |
Liontown Accelerates Underground Transition Amid Market Headwinds
Australian lithium producer Liontown Resources is advancing the transition of its Kathleen Valley mine from open-pit to underground operations to access higher-grade lithium ore and reduce operational waste.
Underground Mining to Fully Replace Open Pit by 2026
Liontown began underground mining at the 2.8mn t/yr site in November 2023. It aims to cease open-pit activity by the first quarter of 2026. The underground ramp-up is scheduled to begin in the second quarter of 2025, as outlined in the company’s H2 2024 report released on 14 March.
Efficiency Gains Support Financial Recovery
The company significantly improved open-pit efficiency before scaling back operations. The waste-to-ore ratio dropped from 5.1 in Q3 to 1.25 in Q4 2024. Spodumene concentrate output surged from 28,171t to 88,683t during the same period.
These gains helped narrow Liontown’s losses, with a net loss of A$15.1mn ($9.5mn) in H2 2024 — a 51% improvement compared to A$30.9mn a year earlier.
Low Lithium Prices Remain a Challenge
Liontown acknowledged ongoing pressure from weak spodumene and lithium chemical prices. Nevertheless, the firm believes operational efficiency at Kathleen Valley will help weather market volatility.
We publish to analyze metals and the economy to ensure our progress and success in fierce competition.
No comments
Post a Comment