By Rhiannon Hoyle
Liontown Resources has begun a review of its planned expansion of the Kathleen Valley lithium project in Western Australia following a collapse in prices for the battery ingredient.
The company said Monday that the review, aimed at preserving cash and reducing near-term funding requirements, could include delays to underground development work, resequencing of the mine plan, and further cost-cutting measures.
“The recent material decline in spodumene prices has triggered significant reductions in short- and medium-term lithium price forecasts,” it said.
Liontown said there is no change to the current 3-million-metric-ton annual plant capacity design and that the current project remains on track for first production in the middle of 2024.
The company has also started talks with lenders on a revised, smaller debt facility.
“The company has been advised by lenders within the syndicate that they remain highly supportive of the project,” Liontown said and expects to provide a funding update by the end of March.
Write to Rhiannon Hoyle at [email protected]
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