Early works and long-lead procurement are underway for Kathleen Valley expansion
Liontown Limited has announced it is proceeding with early works and long-lead item procurement in support of the planned expansion of the Kathleen Valley Lithium Operation, ahead of a formal Final Investment Decision (FID) expected at the end of Q1 FY2027.
The decision to proceed with early works and long-lead procurement represents the first tangible step since Liontown announced its intention to refresh the expansion case originally presented in its 2021 Definitive Feasibility Study. Progressing these initiatives reflects the company’s confidence in the market’s trajectory and the ongoing performance of the Kathleen Valley Lithium Operation.
The expansion study is investigating staged development, with each stage expected to unlock additional production capacity.
Liontown has committed to the following programme of works and procurement:
- Procurement of a 5.5 MW ball mill, a critical path item to increase plant throughput while improving grind size control and, consequently, plant recovery. Combined with progressive plant debottlenecking projects over the next 18 months, locking in the approximate 12-month ball mill lead time now releases incremental plant capacity as soon as possible
- Pre-development drilling to support resource definition, grade control modelling and mine scheduling in the Northwest Flats orebody
- Construction of Stage 1 of the permanent Mine Services Area (MSA), allowing for the accelerated delivery of additional mining fleet and associated ramp-up in support personnel
- Underground development of the Northwest Flats ore body to access underground ore from the recently completed Kathleen’s Corner open pit. This includes the establishment of additional portals, ventilation and associated power and water infrastructure
- Procurement of a third paste plant pump to bring forward the ability to pastefill the Mount Mann and Northwest Flats orebodies simultaneously
- Mobilisation and ramp-up of the expansion project team and establishment of enabling infrastructure for the expansion project, including project offices and associated services
Committed capital for the ball mill purchase is approximately A$12 million, to be expended over the next 12 months. The expected cash expenditure across the entire early works programme in FY2026 is in the range of A$15 – 18 million, with expected cash expenditure ahead of FID of up to $77 million. Further details on capital and operating costs it says will be provided at the time of FID. The statement concluded: “Committing to long-lead items and mobilising the expansion team now is intended to mitigate schedule and pricing risk supporting a robust, fully informed, capital cost estimate at FID and ensuring Liontown is well positioned to capitalise on the strengthening lithium market.”
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