Liontown Ltd. is proceeding with the planned expansion of the Kathleen Valley lithium operation in Western Australia, announcing a multi-million dollar commitment to early works and long-lead procurement ahead of a formal investment decision.
The move highlights the company’s intent to refresh its 2021 expansion strategy and capitalise on what it describes as a strengthening global lithium market.
While a formal final investment decision (FID) is not expected until the end of the first quarter of financial year 2027, Liontown is moving now to mitigate pricing and scheduling risks.
The company is committing AU$12 million for the procurement of a 5.5MW ball mill. With a 12-month lead time, the mill is a critical path item designed to increase plant throughput and improve recovery rates.
This will be paired with debottlenecking projects over the next 18 months to release incremental capacity as soon as possible.
The scope of works also includes underground development to access the Northwest Flats orebody from the recently completed Kathleen’s Corner open pit, involving new portals and ventilation and construction of Stage 1 of the permanent Mine Services Area (MSA) to support an accelerated mining fleet delivery and personnel ramp-up.
The company will also accomplish pre-development drilling to refine grade control and mine scheduling and procure a third paste plant pump to allow for simultaneous filling at the Mount Mann and Northwest Flats orebodies.
Liontown expects to spend between AU$15 million and AU$18 million on the early works programme throughout fiscal 2026. However, total cash expenditure ahead of the formal FID could reach up to AU$77 million.
Liontown Managing Director and CEO Tony Ottaviano said the commitments lay the foundation for the most value-accretive growth currently available to the company.
“The early works position Liontown to deliver additional spodumene concentrate production as we progress through each stage to capture a strengthening market,” Ottaviano said.
The expansion study is currently investigating a staged development model, aimed at unlocking production capacity in phases to align with market demand.
Further details on capital and operating costs are expected when the FID is reached next year.
