Published: April 8, 2025 |

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Australian lithium producer Liontown Resources is on-track to transition its Kathleen Valley Mine from an open pit to an underground site in order to extract higher-grade ore.

The company started mining underground at the 2.8mn t/yr site in November 2023 and plans to entirely stop open pit operations by January-March 2026. Liontown will start ramping up its underground operations starting in April-June 2025, it said in its July-December 2024 half year report.

The company has also increased the efficiency of its open pit operations in recent months. Liontown cut its Kathleen Valley waste to ore ratio from 5.1 in July-September to 1.25 in October-December, and increased concentrate production at the site from 28,171t to 88,683t over the same period.

The company’s recent combined output and efficiency improvements softened losses for the quarter. The company posted losses of $9.5 million (A$15.1 million) in July-December 2024, down from A$30.9 million in the same period in 2023.

Liontown highlighted low spot spodumene and lithium chemical prices as a source of concern despite its recent financial improvement. But Kathleen Valley’s increasing efficiency could mitigate ongoing price challenges, the company said.

Source: Argus Media

Liontown Resources engages in the exploration, evaluation, and development of mineral properties in Australia. The company explores for lithium, gold, vanadium, copper, and nickel deposits, as well as platinum group elements. Its flagship property is the Kathleen Valley lithium project located in Perth, Western Australia. The company was incorporated in 2006 and is based in West Perth, Australia.

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