US-based lithium chemicals producer Arcadium Lithium has suspended expansion plans for its Mt Cattlin spodumene operation in Western Australia.
This decision comes in response to the ongoing fall in spodumene prices.
As a result, the company has decided to pause Stage 4A waste stripping and place the site under care and maintenance after completing Stage 3 mining and ore processing by mid-2025.
By halting expansion beyond Stage 3, Arcadium Lithium anticipates an increase in net expected cash flow of almost $75m to $100m cumulatively for 2024 and 2025.
The care and maintenance strategy is designed to maintain the mine and processing facilities, allowing for a potential resumption of operations if market conditions improve.
Arcadium Lithium remains committed to evaluating the feasibility of underground mining at Mt Cattlin.
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By GlobalData
This exploration could potentially prolong the mine’s operational lifespan.
However, the company said it does not plan to shut down the mine at this time.
Arcadium Lithium president and CEO 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.”
The company, which owns a 100% stake in the Mt Cattlin project, has operations around the world, with facilities and projects in Australia, Argentina, Canada, China, Japan, the UK and the US.
