Name of the Project                                    
Kathleen Valley lithium/tantalum project.

Location
North-east Goldfields of Western Australia.

Project Owner/s
Lithium developer Liontown Resources and Hancock Prospecting.

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
Capital costs for the project are now estimated at A$951-million, up from the previous estimate of A$895-million.

Planned Start/End Date
Kathleen Valley achieved first production in July 2024 and successfully loaded and dispatched its inaugural shipment of spodumene concentrate in September 2024.

Latest Developments
Liontown Resources has scaled back its production plans for the flagship Kathleen Valley lithium project and flagged cost cuts to adapt to low metal prices, months after producing its first spodumene concentrate.

Liontown now plans a production rate of 2.8-million metric tons a year from the end of fiscal year 2027, down from its earlier target of three-million tons by the end of the first quarter of 2025.

The lithium producer has also flagged up to A$100-million in cost reduction and deferrals expected to be captured during its business optimisation programme, with a possibility of further expansion of the project when market conditions improve.

Key Contracts, Suppliers and Consultants
ZOOID (environmental, social and 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); Metso-Outotec (design, fabrication and delivery of a semiautogenous grinding mill); Lycopodium Minerals (engineering, procurement and construction, or EPC, management); Zenith Energy (hybrid power station – design, build, own, operate and maintain); and GR Engineering Services (EPC).

Contact Details for Project Information
Liontown Resources, tel +6 8 6186 4600 or email info@ltresources.com.au.