Wodgina eyes October Li plant commissioning

West Australian lithium ore exporter Mineral Resources expects to start commissioning a concentrate processing plant at its Wodgina mine in October, ramping up to full production in next year's second quarter.

Once fully operational, the plant will have the capacity to produce 750,000 dry metric t/yr of 6pc lithium concentrate, increasing to 880,000 t/yr if 5.5pc lithium concentrate is targeted.

The total capital cost for the concentrate plant project, which includes a crushing plant, three concentrate production trains, an airfield, a gas pipeline and a power station, is estimated at A$610mn ($451mn). Annual earnings before interest, tax, depreciation and amortisation is forecast at A$600mn based on a concentrate sales price of $960/t.

The Wodgina mine is currently the world's largest exporter of hard rock direct shipping lithium ore with shipments to China for the year to 30 June estimated to be around 10pc below annual guidance of 4.5mn t.

The company also owns 43.1pc of the Mount Marion lithium project that exports lithium concentrate to China.