Lithium: toe the line or embrace brine?
Australian Mining Review
The Australian Mining Review is a monthly feature-based publication providing news on issues affecting the industry.
Lithium prices have taken a tumble as supply outpaces demand, driving a drop from the 2022 price of around $128,000/t for lithium carbonate, to today’s value of about $15,500/t. Two years on from lithium’s peak, we are left wondering: was it just a flash in the pan?
Recent industry response is a mixed bag.
In early October, Rio Tinto (ASX: RIO) confirmed its $9.95b purchase of U.S.-based Arcadium Lithium . While the hefty purchase appears to validate optimism around a recovery in lithium prices for some, the move may have more to do with a potential shift from hard rock to brine — enabled by direct lithium extraction (DLE), which Arcadium has industry-leading capabilities in.
Although continental brine resources are more abundant globally than hard rock ore, extraction from brine relies on slow, water-intensive extractive processes based on evaporation. New lithium extraction technologies, DLE, are looking to enable the processing of both continental and other more dilute brines without the need for evaporation ponds.
While the global industry is taking a second look at its options, Australia should consider itself lucky. With our wealth of hard rock deposits, Australian lithium benefits from quicker extraction, keeping the industry nimble and responsive to fluctuations in supply and demand.
The adaptability of the Australian lithium industry is evident this week, with several major projects being mothballed as our local hard rock lithium miners play it cool — biding their time for a flood in future demand.
For more insight into other Australian commodities at a crossroads, check out the sustainable smelting at Tomago Aluminium feature from our November paper.
Liontown sets its sights on long-term lithium
Liontown Resources Limited (ASX: LTR) looks to be playing the long game, as it heads underground with updated Kathleen Valley production guidance for H2 FY25 in an attempt to better adapt to a low-price lithium environment.
The company’s revised mine plan is designed to deliver 2.8mtpa production rate from the end of FY27, with a focus on high margin tonnes and expected reduction in development and fixed costs.
300 jobs impacted as Bald Hill mothballed
Mineral Resources Limited (ASX: MIN) will transition its Bald Hill lithium mine into care and maintenance this week with about 300 staff impacted.
The company says all Bald Hill employees will be redeployed, followed by a redundancy process if opportunities cannot be found.
Australia opens its first rare earths processing plant
A globally significant processing facility, officially opened by Federal Resources Minister Madeleine King in Kalgoorlie, WA, is the first of its kind in Australia and builds the nation’s supply chain resilience by being the largest facility outside China.
The new Lynas Rare Earths Ltd (ASX: LYC) processing plant will create around 115 direct jobs in WA’s Goldfields region by processing ore from the nearby Mt Weld mine to create a mixed rare earth carbonate.
New Acland Coal extends funding of PCYC Oakey Connect program
A substantial funding extension from New Hope Group ’s (ASX: NHC) New Acland Coal will allow the PCYC Oakey Connect program to continue to support the region’s young people for another two years.
New Acland Coal, which has been supporting social and community projects throughout the Darling Downs for more than 20 years, will invest another $360,000 to fully fund the vital program.
Australia’s first commercial graphite micronising plant
International Graphite (ASX:IG6) has secured funding to construct the first purpose-built commercial graphite micronising plant in Australia.
The company has entered into a funding agreement with the WA Department of Jobs, Tourism, Science and Innovation (JTSI) on behalf of the WA Government for $4.5m.
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Read the November edition here
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Shining a light on Sunrise Dam
With gold prices reaching an all-time high of $3935oz (US$2685oz) in September 2024, gold mining companies are reaping the benefits as demand for this precious metal remains elevated.
One such company is AngloGold Ashanti , owner of the Sunrise Dam operation which lies 205km north-northeast of Kalgoorlie and 55km south of Laverton in WA.
Sustainable smelting at Tomago Aluminium
The aluminium industry is at a crossroads — although a key enabler of technology critical to the energy transition, the subsector itself is also energy hungry.
The smelting process, where alumina is turned into aluminium metal, is a significant source of Scope 2 or indirect emissions, driven by electricity generation.
As Australia’s largest aluminium smelter, Tomago Aluminium operates round-the-clock to produce 590,000tpa of aluminium, using around 10% of the NSW power supply each year.
The Australian Mining Review speaks with Tomago Aluminium chief executive and general manager Jerome Dozol about the company’s plans to be 100% powered by renewable energy by 2035 and, in turn, cut its total emissions by 85%.
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