Arcadium Lithium has announced it will undertake steps at its Mt Cattlin site that the company expects will increase net expected cash flow in 2024 and 2025 cumulatively by approximately US$75-100 million.
Despite the persistent decline in spodumene prices, the company said it does not intend to close its Mt Cattlin spodumene operation in Western Australia at this time. Instead, it will suspend Stage 4A waste stripping and any expansionary investment beyond Stage 3 at the site. Additionally, the company plans to place the Mt Cattlin site into care and maintenance after it completes Stage 3 mining and ore processing by the end of the first half of 2025.
Transitioning the project to care and maintenance will keep the mine and processing facilities in a position to potentially resume operations when market conditions become more favourable. Arcadium Lithium said it will continue to explore the viability of underground mining at the Mt Cattlin site, which could potentially extend the remaining mine life.
The company’s President and Chief Executive Officer Paul Graves, said, “We remain committed to developing our global portfolio of hard rock assets and are confident that they will continue to be a significant part of Arcadium Lithium’s growth story.
“Unfortunately, production at Mt Cattlin beyond the current stage of the open pit cannot be justified in the current price environment for spodumene. We will maintain open and transparent dialogue with all of our stakeholders while supporting our employees and communities in Western Australia during this transition period.”
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