Battery metals bust spurs output cut at leading lithium mine
Australia’s biggest lithium mine and one the world’s flagship projects has become the latest battery-metals venture to feel the pain from faltering demand growth, with output set to be trimmed as prices sink.
Production from Greenbushes in Western Australia is likely to be reduced as sales drop and inventories rise, according to part-owner IGO. Output guidance for spodumene concentrate - the lithium-bearing material — was cut to a range of 1.3-million to 1.4-million tons this financial year, down 100 000 t.
A slump across battery materials has upended projects worldwide as gluts emerge, even as optimism about the outlook for electric vehicles persists. With prices in freefall, miners are imposing production cuts and seeking to rein in costs. In Australia, Pilbara Minerals said recently it’s unlikely to pay a dividend, Core Lithium will cut jobs, and some nickel mines will be halted.
“The irony is clearly that this is the lowest-cost producer globally of the hard rocks,” said Jon Bishop, analyst at Jarden Securities, referring to the type of formation mined at Greenbushes. “So for them to be curtailing production, it’s a little bit about-face.”
Sales will be about 20% lower than production in the second half as inventories build at site, IGO said in a statement. The mine’s partners — which include Albemarle, and a joint venture of Tianqi Lithium — have agreed to a monthly pricing mechanism for offtake, replacing a quarterly framework.
Prices of spodumene have extended losses after collapsing by 80% last year. If the current price environment persists, other operations would certainly have to consider dialing back production, according to Jarden’s Bishop.
Comments
Research Reports
Projects
Latest News
Showroom
BOVA cemented their reputation in Africa by delivering high quality engineering through their range of safety footwear. 21 years after producing...
VISIT SHOWROOM
ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
