Wodgina lithium mine suspended on weak demand

The joint-venture owners of the Wodgina lithium mining and processing operation in Western Australia (WA) have placed it in care and maintenance mode in response to the weak global lithium market.

US-based Albemarle, which acquired 60pc of the project for $820mn from Australia's Mineral Resources that retains 40pc, said they are mothballing Wodgina that until last year was the world's largest exporter of direct shipping lithium ore to China.

"The decision was made in recognition of challenging global lithium market conditions and to preserve the value of the world-class Wodgina spodumene ore body," Mineral Resources said.

Wodgina's direct ore shipping exports were halted last year with the ore stockpiled to provide feedstock for three 250,000 t/yr lithium concentrate trains. The first train has been commissioned and the other two are nearing completion.

Mineral Resources as part of its deal with Albemarle has acquired a 40pc stake in two 25,000 t/yr lithium hydroxide plants being built at Kemerton, southwest of WA's Perth. Construction of these plants is under way with first production due in the first half of 2021.

The fall of lithium concentrate prices to under $600/t from close to $1,000/t in the first half of 2018 has resulted in other producers such as Pilbara Minerals cutting back on production and the Bald Hill lithium/tantalite mine going into administration.