Wesfarmers to proceed with Mt Holland lithium expansion project
Make us a preferred source
Make us a preferred source on Google
The news: Wesfarmers has announced the approval of a final investment decision to expand its Mount Holland lithium project in Western Australia.
The numbers: Covalent Lithium, a joint venture company owned by Wesfarmers and Sociedad Quimica y Minera de Chile (SQM), has completed a definitive feasibility study for the expansion project, which will increase nameplate spodumene concentrate production from 380,000 tonnes a year to 760,000 tonnes a year.
An ore sorting facility will also be constructed to recover stockpiled material currently unsuitable for processing, adding around 3 million tonnes of spodumene concentrate production over the life of the operation.
Construction of a second concentrator is expected to commence in the second half of calendar year 2027, with the first spodumene concentrate production volumes from the expansion expected in the first half of CY30.
Wesfarmers’ share of capital expenditure for the project is estimated to be between $645 million and $715 million and will be funded using existing cash and debit facilities.
What they said: Wesfarmers managing director Rob Scott said the decision to proceed with the expansion of the mine and concentrator will deliver “economies of scale” across mining and processing.
“Mount Holland is a world-class, integrated lithium business and this expansion improves its position on the cost curve,” said Scott.
“The expansion of Mount Holland will deliver an attractive return on capital for Wesfarmers shareholders, enabling us to meet strong demand for high quality product and will enhance the resilience of the business through commodity price cycles.”
The source: ASX
