Project Ownership: The Mt Cattlin lithium mine project was previously wholly owned and operated by Galaxy Resources Limited. In 2021, Galaxy Resources Limited merged with Orocobre to form Allkem, which holds 100% equity and operational rights in Mt Cattlin. In November 2023, Allkem and US-based Livent announced a merger, with the new company named Arcadium Lithium. Allkem and Livent own 56% and 44% of the new company, respectively. On October 9, 2024, Rio Tinto announced that it had reached an acquisition agreement with Arcadium Lithium.
Resource Situation: In July 2023, Cattlin project updated its latest resource overview. The total resource of the mine is 5.8 million mt, with an average grade of 0.98%, equivalent to 172,600 mt of LCE. The reserves amount to 12 million mt, with an average grade of 1.3%, equivalent to 360,000 mt of LCE. The estimated mine life is 4-5 years (2027-2028).
The project commenced production in June 2010. The mine was closed for maintenance from 2013 to 2016 due to the downturn in the lithium market. With the significant increase in lithium prices in 2015, the Mt Cattlin project was restarted. In 2017, the beneficiation capacity was 1.6 million mt, and the lithium concentrates capacity was 137,000 mt. Since the commissioning of the yield optimization project in 2019, the annual ore processing capacity has reached 1.8 million mt, capable of producing approximately 220,000-240,000 mt of 6% grade lithium concentrates annually. Since 2020, it has chosen to significantly reduce mining volumes and digest the accumulated low-grade raw ore.
Sales Situation: In July 2020, Yahua Group announced that its wholly-owned subsidiary, Yahua International, had renewed the "Offtake Agreement" with Galaxy Lithium for the purchase of lithium concentrates. The contract term was extended from 5 years to 3 years, ending on December 31, 2025. The products supplied by Galaxy Lithium to Yahua International are spodumene concentrates, with an annual supply of no less than 45,000 mt in 2020, and no less than 120,000 mt in each contract year from 2021 to 2025. When the supply exceeds 120,000 mt, Yahua International has the priority to purchase under the same conditions.
In November 2020, Chengxin Lithium announced the "Notice on Signing the Offtake Agreement for Lithium Concentrates," stating that its wholly-owned subsidiary, Shengtun Lithium, had signed an "Offtake Agreement" with Galaxy Lithium. Shengtun Lithium intends to purchase spodumene concentrates from Galaxy Lithium, with a cooperation period of 3 years. The minimum quantity of products purchased by Shengtun Lithium from Galaxy Lithium in each contract year is 60,000 mt, with 15,000 mt delivered quarterly within each contract year.
Project Status: On September 4, 2024, Arcadium Lithium announced that it would suspend the Phase 4A waste stripping and Phase 3 expansion investment at the Mt Cattlin mine site in Western Australia. The company plans to transition the Mt Cattlin mine site into a conservation state after completing Phase 3 mining and ore processing in the first half of 2025. The company stated that it currently does not intend to close Mt Cattlin, and transitioning to a maintenance state will allow the mine and processing facilities to potentially resume operations when market conditions become more favorable. Additionally, Arcadium Lithium is still exploring the feasibility of underground mining at the Mt Cattlin mine site, which may extend the remaining life of the mine. The average cash cost of production for SC6 FOB lithium concentrates at Mt Cattlin over the past two years has been approximately $850/mt, indicating relatively high production costs.
