Wodgina lithium concentrate delayed to 1Q 2019

Australia-based mining firm Mineral Resources has delayed the commissioning of the first of three 250,000 t/yr lithium concentrate plants at its Wodgina mine in Western Australia (WA) until late in next year's first quarter.

Commissioning of the first plant in the three-phase A$610mn ($427mn) expansion and beneficiation project will be two months later than expected because of the late arrival of equipment and congestion in fabrication and rubber lining services, the company said.

Mineral Resources became the world's first exporter of direct shipping ore (DSO) from Wodgina in April 2017. But it will end DSO shipments to China at the end of this year as it switches to higher value lithium concentrate production.

The first concentrate production train will now start commissioning in February next year with first lithium concentrate output expected in March. The second train will be commissioned in the April-June quarter of next year and the third train in the July-September quarter. Cost of production at the three concentrators is expected to be around $296/t. The company also has plans to build a lithium hydroxide plant in WA.

Mineral Resources, which also owns 43pc of the Mount Marion lithium mine in WA, said it remains on track to possibly sell 49pc of its integrated Wodgina operation.

"We have received expressions of interest from local and global companies to acquire a minority stake in Wodgina," the company said. "But we will only enter into a sale agreement if it complements what we are doing and adds value for shareholders."

Wodgina is one of the world's biggest hard rock lithium deposits with a mineral resource of 260mn t grading 1.17pc lithium oxide and an ore reserve of 152mn t grading 1.17pc lithium oxide.