Australia iron ore hub resumes operations after cyclone threat
Port Hedland is the world's largest iron ore export hub.
Australia’s IGO warned of an additional net loss in its first-half results this year on Monday, citing a decline in value of its troubled Kwinana lithium hydroxide refinery, which is grappling with production delays and a lithium price slump.
The Kwinana facility in Western Australia is part of the Tianqi Lithium Energy Australia (TLEA) joint venture between IGO and China’s Tianqi Lithium, in which the Australian miner holds 49% and the latter holds a 51% stake.
Lithium hydroxide, the primary product of the refinery, is a key component in electric vehicle batteries.
IGO’s expected impairment on its lithium business comes on the heels of previous write-downs on its nickel operations, which have prompted a strategic review to reassess its resources amid a global nickel market oversupply that drove prices down last year.
TLEA is contending with an accumulation of lithium hydroxide inventory at Kwinana due to falling prices and subdued demand for the metal.
IGO stated it is currently assessing the worth of Kwinana, with the final impairment value yet to be determined.
At the same time, Tianqi Lithium confirmed it is in discussions with TLEA’s management to verify information.
However, no conclusions have been reached regarding the assumptions and results of the impairment charge, according to a separate statement from the company.
(By Roushni Nair; Editing by Rashmi Aich)
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