Arcadium Lithium has confirmed it is planning to suspend State 4A waste stripping, as well as any expansion investments beyond stage 3 at its Mt. Cattlin operation in Western Australia, effectively placing the operation on care and maintenance.
The company cited the continued decline in spodumene process for the decision. The suspensions ar near-term, while the care and maintenance effective date will come in the first half of next year.
As a result of these decisions, the company said it expects to increase net expected cash flow in 2024 and 2025 cumulatively by approximately US$75 to $100 million.
“The company does not intend to close Mt Cattlin at this time,” officials said. “Care and maintenance will keep the mine and processing facilities in a position to potentially resume operations when market conditions become more favorable. Arcadium Lithium will continue to explore the viability of underground mining at the Mt Cattlin site, which could potentially extend the remaining mine life.”
President and CEO Paul Graves noted that Arcadium will remain committed to developing its global portfolio of hard rock assets and are “confident that they will continue to be a significant part of Arcadium Lithium’s growth story” going forward.
“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,” he added.
Source: arcadiumlithium.com