Liontown Resources has provided a comprehensive update regarding the Kathleen Valley lithium project.
The Kathleen Valley lithium project is a Tier 1 battery metals asset located 680km north east of Perth in Western Australia.
Following the award of all major contracts at the project, Liontown estimates that Kathleen Valley’s capital cost to first production will be $951 million. This is about a six per cent increase from the $895 million estimate announced in January 2023.
It also estimates a ten-year average cash cost of $651 per SC6 tonne, excluding royalties.
Liontown said the completion of mine design work and the $1 billion agreement it has with Byrnecut is what underpinned its confidence in bringing forward expansion capital to develop new mining fronts, support ramp up and accelerate 4 megatons per annum (Mtpa) production by two years.
Liontown’s direct shipping ore crushing and sorting program is expected to assist in the design of a potential large-scale sorting circuit that could support the planned 4 Mtpa process plant expansion.
“With 50 per cent of the work completed on site and construction work accelerating, we have clear line of sight to delivering first production from the world-class Kathleen Valley lithium project on schedule in mid-2024,” Liontown Resources managing director and chief executive officer Tony Ottaviano said.
“Mining operations are well underway with Mt Mann pit completed and ready for the underground early works, and Kathleen’s Corner pit production increasing… notwithstanding one of the toughest markets to construct and operate seen in recent years, our capital costs are materially in line with our previous forecast.
“In addition to our priority focus on project delivery, we continue to assist Albemarle with due diligence and to work through our funding options. Further updates on both these processes will be provided in due course.”