Australia’s IGO has trimmed capital spending plans for the Greenbushes lithium mine in Western Australia, lowering its 2025 capital expenditure (capex) forecast to between A$700-million and A$800-million, down from the previous range of A$850-million to A$950-million.

The Greenbushes operation, which is jointly owned by IGO, Tianqi Lithium Corporation (TLC), and Albemarle, is a key asset for the company, continuing to deliver strong cash flows and robust margins. In the March quarter, the mine recorded an earnings before taxes, depreciation and amortisation (Ebitda) margin of 68% and paid a $110-million dividend to joint venture partners on a 100% basis.

The decision to lower capex follows a comprehensive review of the project pipeline at Greenbushes.

“Rob [Telford] and the team have stepped back, looked at the portfolio and gone through it with a fine-tooth comb,” IGO MD Ivan Vella said.

“Some of it is about timing – where it fits in the pipeline – and some of it is simply we don't need to do this now,” he said on a conference call.

Examples of deferred or cancelled spending include non-critical infrastructure such as paved car parks. “We are not cutting corners. This is about being really disciplined, frugal and thoughtful with capex."

He noted that a committee is overseeing capital allocation, with value-for-money remaining a key focus. "What is the right amount to spend, what is the right standard, and how far should we go on that particular requirements? We are looking at both capex intensity and allocation, and this will only continue to improve."

Vella stressed that the Greenbushes lithium mine continued to demonstrate why it was a world-class mining asset. 

"The margins and cash generated at the bottom of the cycle are a standout, not just in lithium but in the broader mining industry,” he said. “The team is implementing operational improvements in the short term, as well as delivering an optimised life-of-mine plan.”

Meanwhile, at the Kwinana lithium hydroxide refinery, the capex guidance has been lowered to between A$65-million and A$75-million for 2025, compared with a previous guidance of A$80-million to A$100-million.

IGO remains cautious on committing further capital to Train 1, which has faced ongoing technical and commercial challenges.

“We have got a very strong focus on any additional capital there,” said Vella. “We want to make sure it is extremely clear what difference it will make, why it is being spent, and the engineering and science behind it.”

Train 1 remains operational, with both IGO and TLC continuing to support the team’s improvement efforts.

“We are talking with TLC about Train 1. We have concerns about its capacity to perform – both technically and in terms of marketability,” Vella said. “We are evaluating a range of options and working through this in a respectful and thoughtful manner.”

All works at the Kwinana Lithium Hydroxide Plant 2, announced in January , have ceased. Discussions are ongoing between IGO and TLC to determine a future path for the Kwinana asset that is acceptable to both shareholders.

Despite the challenges at Kwinana, IGO’s broader portfolio delivered a strong performance in the March quarter. Group underlying Ebitda came in at A$34-million, with underlying free cash flow of A$49-million. The company also strengthened its balance sheet, ending the quarter with a net cash position of A$284-million – an increase of A$38-million from the prior quarter.

The Nova nickel operation posted a significantly improved result, with IGO maintaining its 2025 production and cost guidance. Production is now expected to continue until the end of 2026, delivering an additional 15 000 t to 18 000 t of nickel beyond the current financial year.

On the safety front, the total recordable injury frequency rate stood at 10.6. Vella said IGO was focused on embedding safety programmes aimed at cultural change, including the “Taking Control of My Safety” initiative, which targets behavioural ownership of safety outcomes.

IGO also highlighted improvements to its exploration strategy, implementing a more focused operating model and rationalising its tenement holdings. This resulted in reduced corporate and exploration costs, but also led to redundancies within the team.