PERTH (miningweekly.com) – Lithium miner Allkem has reported a stellar year of production with its Olaroz lithium facility, in Argentina, and its Mt Cattlin operation, in Western Australia, both finishing strongly.

The Olaroz facility achieved record yearly production of 16 703 t of lithium carbonate in the full year ended June, with a record 5 059 t produced in the June quarter, a 47% increase on the previous corresponding period.

Allkem told shareholders that the excellent operational performance continues, reflecting robust plant reliability, low downtime and improved energy efficiency with better operating practices and high brine feedstock concentration.

The Olaroz Stage 2 lithium facility achieved first production in mid-July, with wet lithium carbonate cake produced at the filter presses. The focus will be commissioning of the dry plant, progressively increasing production volumes and improving product quality over a 12- to 18-month ramp-up period.

The Olaroz Stage 2 project involved the construction of 15 extra brine wells, 31 evaporation ponds, three lime plants, a reverse osmosis water plant, a soda ash plant, a carbonation plant, accommodation and various service spaces.

At Mt Cattlin, spodumene concentrate production in the full year reached 130 984 t, exceeding previous guidance with 58 059 t. In the June quarter, production was up by 50% on the previous quarter, to 58 059 t, reflecting significant improvements in grades and favourable mineralisation as mining moved into the central zones of the main orebody.

Allkem on Thursday reported that lithium carbonate sales were 3 430 t during the quarter, generating revenue of around $132-million, while spodumene sales reached 46 787 t generating revenues of around $201-million.

Group revenue for the quarter reached $332-million, with group net cash at the end of June being recorded as $648.8-million, up $70.5-million from the end of March.

Allkem is in the midst of a merger agreement with NYSE-listed Livent to create a $10.6-billion global lithium chemicals producer. The transaction is expected to close at the end of 2023, and will see Allkem shareholders own 56% of the newly created company, with Livent shareholders holding the remaining 44%.

The transaction remains subject to regulatory, shareholder and court approvals.