Name of the Project
Kathleen Valley lithium/tantalum project.
Location
North-east Goldfields of Western Australia.
Project Owner/s
Liontown Resources.
Project Description
A definitive feasibility study (DFS) has confirmed the potential to develop a state-of-the-art, second-generation lithium/tantalum mining and processing operation.
The DFS optimises the mine schedule, process plant design and forecast sales pricing to enhance the technical and financial viability of a standalone, long-life, four-million-tonne-a-year operation.
The project has an ore reserve of 68.5-million tonnes grading 1.34% lithium oxide and 120 parts per million tantalum pentoxide, underpinning an initial estimated 23-year mine life, based on the updated mining schedule.
Building on the October 2020 prefeasibility study, the DFS base production has been increased from two-million tonnes a year to 2.5-million tonnes a year, producing about 500 000 t/y of spodumene concentrate, with a four-million-tonne-a-year expansion planned in Year 6 to deliver about 700 000 t/y spodumene concentrate.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a real 8% discount rate, of A$4.2-billion and an internal rate of return of 57%, with a payback of 2.3 years.
Capital Expenditure
Initial project capital is estimated at A$437-million.
Planned Start/End Date
First production is expected to start in the first half of 2024.
Latest Developments
Liontown Resources has signed a sales agreement with electric vehicle (EV) giant Tesla for the supply of spodumene concentrate from its Kathleen Valley project.
Under the agreement, Liontown will supply up to 150 000 t/y of spodumene concentrate, starting in 2024, representing one-third of Kathleen Valley’s startup production capacity of 500 000 t/y.
The agreement with Tesla is the second offtake arrangement secured for Kathleen Valley, following the foundational offtake arrangement with LG Energy Solutions. The two agreements represent more than half of Liontown’s planned production that is now covered by long-term agreements with high-quality customers.
Liontown and Tesla will now work together to complete the negotiation and execution of detailed definitive agreements, which must be completed and executed by the end of May.
Key Contracts, Suppliers and Consultants
ZOOID (environmental social governance); Optiro (geology and mineral resources estimate); Snowden Mining Industry Consultants (mine optimisation, planning, design and scheduling); ALS Metallurgy (process testwork); Lycopodium Minerals (process and infrastructure design, capital and operating expenditure); Knight Piésold (tailings and hydrogeology); MBS Environmental (environmental studies); Peter O’Bryan and Associates (geomechanical engineering); and Metso-Ouotec (design, fabrication and delivery of a SAG mill).
Contact Details for Project Information
Liontown Resources, tel +6 8 6186 4600 or email info@ltresources.com.au.