IGO’s first quarter as an owner of the Greenbushes lithium mine in Western Australia has exceeded expectations as production impressed and commissioning of one of three existing processing plants at the mine commenced.
Greenbushes produced 267,678 tonnes of spodumene concentrate for the September quarter, which amounted to 66,893 tonnes of spodumene concentrate according to IGO’s 24.99 per cent attributable share of Greenbushes production.
The operation is made up of three existing and operational concentrators – the technical grade plant (TGP), and two chemical grade plants, CGP1 and CGP2, with a total installed capacity of 1.34 million tonnes per annum of spodumene concentrate.
There are also plans for three additional concentrators at Greenbushes. A tailings retreatment plant (TRP) is partially constructed, while a third chemical grade plant (CGP3) is expected to start construction in 2022 and a fourth chemical grade plant (CGP4) is to be built after that.
In June 2021, IGO entered into a corporate joint venture with Tianqi Lithium Energy Australia (TLEA), which saw the two acquire a 51 per cent stake in Greenbushes owner, Talison Lithium. Albemarle Corporation holds the remaining 49 per cent interest in Talison Lithium.
Despite higher-than-normal rainfall, mining, processing and capital development activities progressed to plan during the September quarter.
IGO managing director and chief executive officer Peter Bradford said he was pleased with the headway being made at Greenbushes.
“… Good progress was achieved within the lithium joint venture (in the quarter), with key growth projects being advanced during the first reporting period following the successful completion of IGO’s investment in the lithium joint venture with Tianqi Lithium Corporation,” he said.
Bradford also noted the work being done at the Kwinana lithium hydroxide plant in Western Australia, highlighting the progress being made at its first of two trains, which is now fully constructed.
“At the Kwinana refinery commissioning of Train 1 has been progressed with a key milestone achieved during August with the first lithium hydroxide produced. During this period, we have witnessed increased global demand for lithium, with prices responding strongly.”
Production at IGO’s Nova operation in Western Australia decreased in the three months to September.
Nickel production at Nova decreased by 13 per cent from 7887 tonnes to 6889 tonnes for the quarter while copper production decreased by 15 per cent from 3538 tonnes to 3023 tonnes for the quarter.
Despite this, nickel production exceeded IGO’s guidance of between 6250 and 6750 tonnes for the September quarter, while copper production fell within the quarterly guidance of between 2875 tonnes and 3125 tonnes.
While IGO recorded a 29 per cent reduction in sales revenue for the September quarter, the company enjoyed a net profit after tax of $46 million for the three months. $13.2 million of its profits came from IGO’s share of TLEA.