IGO ready to ramp up Greenbushes lithium output
IGO and its partners in the massive Greenbushes lithium mine in WA’s South West will charge into the new financial year with “unconstrained” mining and processing after earlier moves to trim production amid flagging prices.
IGO — which has a 49 per cent stake in the mine through a complex partnership arrangement with Talison Lithium and US giant Albemarle — on Tuesday reported spodumene concentrate production of 332,000 tonnes for the June quarter, up 19 per cent on the previous three-month period.
That took full-year production to 1.383 million tonnes — at the higher end of its 1.3mt to 1.4mt guidance.
IGO trimmed back Greenbushes production earlier this year after Tianqi and Albemarle warned they would take subsequently less concentrate in the first half of 2024 as prices for the key battery ingredient remained in the doldrums.
But on Tuesday IGO said it would target between 1.35mt and 1.55mt with “unconstrained mining processing operations for the full year”.
Cash costs in the June quarter fell 12 per cent to $338/t thanks to increased production but average realised prices were off slightly — down from a free-on-board price of $US1034/t in the previous quarter to $US1020/t.
That still helped IGO collect $159.3 million in dividends from the joint venture, taking full year receipts to $761.4m.
IGO is also hoping a massive planned shutdown of its trouble-plagued lithium hydroxide plant at Kwinana will help resolve long-running teething issues and continue it ramp-up towards capacity.
It said the shutdown in the second quarter would be used to address “several key rectification works” that will deliver the next uplift in train 1’s production run-rate.
More to come.
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