Liontown Resources (ASX:LTR) has transitioned its Kathleen Valley Lithium Operation in Western Australia to become a fully underground mining operation following the completion of open pit mining.
The company sent off its final truckload of ore from the operations after three years of open pit mining.
Liontown used waste rock uncovered in open pit mining to construct key infrastructure at the project, including the run-of-mine pad, as well as the tailings storage facility.
Ore sourced from the open pit allowed the company to begin early commissioning and ramp up activities, while also accelerating the approval of a processing plant flowsheet and operating envelope.
Underground operations are expected to reach a full production level of 2.8 million tonnes annually through establishing a consistent mill feed from open pit mining, with feed supplemented through until early FY27.
Liontown, which has a market capitalisation of $4.30 billion, sourced mining services contractor Iron Mine Contracting to deliver open pit mining at Kathleen Valley.
CEO Tony Ottaviano says the completion of open pit mining on schedule marks a “significant achievement” for the company.
“The plan was set five years ago as part of our Definitive Feasibility Study and delivering to that plan is a testament to the strength, skill, and determination of our team and contractor Iron Mine Contracting,” Ottaviano says.
“The open pit exceeded recovery targets in its final six months of operation and built substantial strategic stockpiles, providing feed security as underground operations ramp up.
“Our underground mine is progressing to plan, with the flexibility to prioritise high-margin ore and scale efficiently in response to market demand.”
Kathleen Valley is located 680km northeast of Perth in the northern Goldfields region of Western Australia. Liontown began working on the asset in 2017 before construction in 2022.
Lithium plays a crucial role in the electronics sector, as well as the medical space. The commodity is primarily used in rechargeable batteries, electric vehicles, and large-scale energy storage.
Trading Economics reports the price of lithium at ¥99,000 ($21,217) per tonne at the time of writing. Lithium has seen a 31.91% increase for this year to date as the globe shifts to the electronification of industries to meet net zero goals.
Liontown Resources is focused on powering a sustainable future with a reliable supply of battery minerals.
Write to Maddison Elliott at Mining.com.au
Images: Liontown Resources
