Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Australia’s Liontown Resources said on Wednesday it has entered a A$550 million ($363.2 million) debt facility for the planned ramp-up and expansion of its flagship Kathleen Valley lithium project in Western Australia.
The debt facility would ensure that the project is funded through first production and ramp up to 3 million tonnes per annum (Mtpa) base case.
“The debt facility provides financial certainty and sufficient time for Liontown to complete the previously announced review of Kathleen Valley’s 4 Mtpa expansion,” the miner said.
The company said in January it was reviewing the project to lower near-term funding needs, which could include delaying its 4 Mtpa underground development, other mine plan adjustments, and further cost cuts.
($1 = 1.5142 Australian dollars)
(By Ayushman Ojha; Editing by Shounak Dasgupta)
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