Lithium developer Liontown Resources [ASX:LTR] has received mining and works permits from the WA Department of Mines, Industry, Regulation and Safety to start construction at Kathleen Valley.
Permission has subsequently been granted for the commencing of its lithium and tantalum mining operations at the site, with construction works to lead on to mining activities by 2023.
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Kathleen Construction to officially begin
On Monday, Aussie lithium developer Liontown Resources detailed the latest development in its endeavours to generate a fully functioning operational lithium processing mine in Kathleen Valley, WA.
An approved mining and works proposal has been granted by the WA Government to construct and open its 4Mtpa Kathleen Valley Lithium Project.
The company has now received the final piece to its Kathleen construction puzzle, approval also having been received by the WA Department of Water and Environmental Regulation (DWER) along with other relatable permits.
Activities in line with LTR’s developmental schedule will now commence, jump-starting construction into the rest of 2022 and into 2023, commissioning to follow by Q2 24.
LTR management commented:
‘The Kathleen Valley Project is one of the most significant new long-life lithium projects being constructed anywhere in the world.
‘The initial 2.5Mtpa project will deliver 500ktpa of SC6.0 spodumene concentrate to global markets, with a planned expansion to 4Mtpa/700ktpa of spodumene concentrate within six years.
‘This will position Liontown to become a leading global lithium producer, delivering spodumene concentrate which is a critical input to the rapidly growing lithium-ion battery and electric vehicle industry worldwide.’
So far, activities at Kathleen Valley include early construction works and pre-development preparations; clearing of the site, accommodation for workers, construction tender awards, sourcing equipment, items and employment of mining workers.
LTR has also begun necessary water exploration and bore drilling, with grade control drilling (for open-pit mining) having already been completed.
Liontown’s Managing Director and CEO Tony Ottaviano commented:
‘The receipt of approval for our Mining Proposal along with the Works Approval represents another major milestone for the Kathleen Valley Project. With all key enabling permits now in place, our development team can move ahead at full pace to begin major site construction activities. This is a very exciting time for everyone involved with the Company, and shareholders can look forward to steadily increasing news-flow in the weeks and months ahead as we move into the full-scale commercial development phase.
‘We look forward to delivering a world-class project to world-class standards and creating significant value for all our key stakeholders.’
Liontown also pointed out that its achievements extend beyond lithium, as it received a Letter of Award for the construction of the ‘ground-breaking’ 95MW hybrid power station, expanding its prospects with project partner Zenith Energy.
LTR, Lithium stocks and the green future
Liontown’s $545 million Kathleen Valley project, located 680km north-east of perk and 60km north of Leinster, has already generated offtake interest in Tier-1 offtake clients like Ford, Tesla, and LG Energy.
In the past, LTR expressed the expectation for lithium deficit to increase into 2030 due to tight supplies.
Greenfield projects were anticipated to take 8–10 years to reach first production, slowed by issues with permits, funding, and geopolitical impacts.
Meanwhile, the International Energy Agency sees lithium demand growing sixfold to 500 kilotonnes by 2030, calling for at least 50 more mines to meet the boom.
In 2021, eight of 10 of the top-performing stocks were lithium stocks.
And while lithium stocks are calming in 2022, we can see demand remains strong.
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Regards,
Kiryll Prakapenka
For Money Morning
