Wesfarmers and Chilean partner SQM approve $1.4 billion expansion of Ht Holland lithium project
The final investment decision by the WA conglomerate and Chile’s SQM will double annual production of lithium concentrate from the Mt Holland mine, near Southern Cross, to 760,000 tonnes from 2030.
Wesfarmers and its Chilean partner have approved a $1.4 billion expansion of their WA lithium mine, better positioning the project to make money through the battery metal’s volatile price cycle.
The WA conglomerate and Chile’s SQM will each spend up to $715 million to double production of lithium concentrate from the Mt Holland mine, near Southern Cross, to 760,000 tonnes a year from 2030 with the addition of a second concentrator and a new ore sorter.
Since entering production two years ago, Mt Holland’s output has mainly been sold to Chinese buyers while the partners’ Covalent lithium hydroxide plant at Kwinana is being commissioned and readied for commercial production next year.
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By continuing you agree to our Terms and Privacy Policy.Together the mine and refinery cost $2.6b.
However, the expansion of Mt Holland has been a key part of their strategy since the mine was in the planning, with a bigger scale project seen as delivering lower mining and processing costs.
Wesfarmers chief executive Rob Scott on Wednesday said Mt Holland was “a world-class, integrated lithium business and this expansion improves its position on the cost curve”.
“The expansion of Mt Holland will deliver an attractive return on capital for Wesfarmers shareholders, enabling us to meet strong demand for high quality product and will enhance the resilience of the business through commodity price cycles,” Mr Scott said.
The 50,000-tonnes-a-year Kwinana refinery won’t be able to handle all the additional production from Mt Holland. Instead, it will be sold as lithium concentrate to willing refiners in Asia.
However, it gives Wesfarmers and SQM the flexibility to guarantee supply for a potential expansion of the refinery once it has been running at full capacity and turning out commercially certified lithium hydroxide for an extended period.
Construction work for the Mt Holland expansion will begin in the June half-year, with first volumes expected in the first half of 2030.
More to come.
Originally published as Wesfarmers and Chilean partner SQM approve $1.4 billion expansion of Ht Holland lithium project
