BHP bets billions on Chile mines to face global copper crunch
BHP detailed to investors this week plans to spend $10.7 billion to $14.7 billion within about 10 years.
Lithium miner Allkem Ltd, which is currently subject to a $10.6 billion merger deal with Livent Corp, posted a record annual profit on Tuesday and forecast higher spodumene and lithium carbonate production for fiscal 2024.
Shares of Allkem Ltd were up nearly 4.5% at A$14.49, as of 0034 GMT, marking their biggest intraday gain in 10 weeks.
The Argentina-based miner expects to produce 210,000 tons (kt) to 230 kt of spodumene from its flagship Mt Cattlin project in 2024, higher than Visible Alpha consensus estimate of 203 kt.
Allkem also expects production costs for Mt Cattlin to remain lower during 2024.
Lithium carbonate production from its Olaroz operations is expected to rise to 22 kt-26 kt tons from 16.7 kt, as Allkem continues to ramp up production from its Olaroz Stage II project.
Allkem’s Olaroz Stage II achieved first wet production in mid-July, with commissioning to continue and ramp up over the next 12-18 months.
“With two revenue-generating operations being supplemented in the near future by Olaroz Stage II and a strong balance sheet, we are fully funded to complete construction at Sal de Vida and the development of James Bay,” said Allkem CEO Martin Perez de Solay.
The miner’s Sal de Vida project, located in the Catamarca province in Argentina, has a nameplate capacity of 45 kt per annum of battery grade lithium carbonate.
Canada-based James Bay project is designed to produce around 330 kt per annum of spodumene concentrate over a project life of 19 years.
In May, Allkem and Livent said they will come together to create the world’s third-largest producer of the metal used to make electric vehicle batteries. Shareholder votes on the merger are scheduled in the coming months.
For the year ended June 30, Allkem posted a net profit attributable $441.7 million, compared with $305.7 million a year ago and a Refinitiv estimate of $439.8 million.
(By Poonam Behura and John Biju; Editing by Krishna Chandra Eluri, Shailesh Kuber and Sherry Jacob-Phillips)
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