Misplaced Pages

Australia has one of the biggest lithium reserves and is the biggest producer of lithium by weight, with most of its production coming from mines in Western Australia. Most Australian lithium is produced from hard-rock spodumene, in contrast to other major producers like Argentina, Chile and China, which produce it mainly from salt lakes.

The world's largest hard-rock lithium mine, the Greenbushes mine, is in Western Australia. It is co-operated by the Chinese company Tianqi Lithium and the Australian companies Talison Lithium and IGO Limited. In 2021, it contributed 40% of the lithium mined in Australia.

Australia is home to lithium miners Orocobre, Core Lithium, Pilbara Minerals, Mineral Resources and Altura Mining.

Major sites

Greenbushes mine

The Greenbushes mine in the southwest of Western Australia is Australia's oldest and biggest lithium mine. It was opened in 1984 by Greenbushes Tin, which had discovered major lithium deposits at the site four years previously while exploring for tantalum. The mine was purchased by Talison Minerals in 2007.

In the year to July 2022, Greenbushes produced 1.13 million tons of spodumene concentrate.

Mount Marion

The Mount Marion mine is an open-pit mine in Western Australia near Kalgoorlie. It was originally developed by a joint venture between Mineral Resources and Neometals and became operational in 2017. Ganfeng Lithium purchased Neometals' stake in 2018. The mine is today co-owned equally by Mineral Resources and Ganfang.

Mount Marion contains the world's second-biggest high-grade lithium mineral resources, with an estimated 71 million tonnes of spodumene.

Pilgangoora

Pilbara Minerals produces out of its Pilgangoora lithium-tantalum project located in Western Australia's Pilbara region. The site is located 120 km from Port Hedland. By 2018, the company had "attracted a group of high quality, experience global offtake partners including Gangfeng Lithium, General Lithium, Great Wall Motor Company and POSCO" as potential customers of its Pilgangoora project and was exploring options to scale the project.

The Pilgangoora mine was owned by Altura Mining until 2021, when the company went bankrupt. Its assets were purchased by Pilbara Minerals for A$201 million (US$151 million).

Pilbara Minerals commenced construction of its Pilgangoora project in January 2017 which was completed in late July 2018, producing its first lithium concentrate one month later. Pilbara Minerals delivered 111,199 dry metric tonnes (dmt) to date for 2019 financial year with forecasted production for its March quarter between 47,000 and 52,000 dmt. On 28 March 2019 Pilbara announced it will commence a partnering process to support its expansion of the Pilgangoora project.

Mount Cattlin

The Mt Cattlin mine is an open-pit mine near Ravensthorpe, Western Australia. It was developed by Galaxy Resources (now Allkem) and opened in 2010. The site contains an estimated 8.2 million tonnes of lithium reserves with a lithium oxide equivalent content of 1.23%. In 2019, the mine produced 192,000 dry metric tonnes of spodumene. Mining was temporarily suspended there in 2013 due to a drop in lithium prices, but was restarted in 2016.

Processed ore is shipped out via the port of Esperance around 200 km east of the mine.

Wodgina

The Wodgina lithium mine in Western Australia is operated by a joint venture between Albemarle and Mineral Resources. It has a theoretical annual production capacity of 750,000 tonnes. The site was inactive from 2019–2021, as low lithium prices made its operation unprofitable.

Historically, Wodgina was primarily an iron mine. Iron extraction there ceased in 2017.

Finniss Mine

The Finniss Lithium Project in the Northern Territory is the only Australian lithium mine outside of Western Australia. It opened in 2022 and is operated by Core Lithium. The project will unfold in stages, initially with open-pit mining near Grants and Hang Gong, as well as underground mining at the Grants, BP33, and Carlton prospects. The mine is estimated to contain 31 million tonnes of lithium-containing minerals, with a lithium oxide-equivalent content of 1.3%. During construction, the project was given Major Project Status by the Australian government, which meant it was eligible for a streamlined federal approval process and help in dealing with local and state approval processes. Battery-grade lithium hydroxide was produced as part of the test works on spodumene mineral concentrate samples from the project in April 2021. Tesla, Inc. has contracted for 110,000 tonnes of spodumene concentrate over four years from the Finniss lithium mine.

Mount Holland

The Mount Holland mine is an open-pit mine situated 105 km southeast of Southern Cross. Developed by Covalent Lithium (a joint venture between the Chilean company Sociedad Química y Minera and the Australian company Wesfarmers), with operations commencing in late 2023. The project plans to produce 380,000 t of spodumene concentrate to a refinery in Kwinana. The refinery is planned to produce 50,000 t of lithium hydroxide a year with a sodium sulfate by-product.

Similar to Wodgina, the location was previously used for gold mining as the Bounty gold mine from 1989 to 2001, with much of the infrastructure removed prior to construction.

Other

Many Australian lithium producers also operate outside of Australia. For instance, Allkem, in addition to operating the Mt Cattlin mine, sources much of its lithium from various Argentinian sites and James Bay, Canada.

Table of Lithium Mines and Deposits in Australia

Statistics

In financial year 2021-22, Australia produced 330,000 tonnes of lithium carbonate equivalent. For comparison, Chile, the world's second biggest lithium producer, produced 45,000 tonnes in 2018. China, the third-biggest, produced 38,000 tonnes. As of 2023, 53% of the world's annual lithium supply is mined in Australia. 96% of it is exported to China for processing.

Worldwide production increased by 74 percent from 2016 to 2017, predominantly due to a "threefold increase in Australia's spodumene production". In 2017 Australia overtook Chile as the largest producer of lithium.

According to the United States Geological Survey, "five spodumene operations in Australia and two brine operations each in Argentina and Chile accounted for the majority of world lithium production". "The leading spodumene operation in Australia increased its spodumene concentrate production by about 40 percent in 2018 and remained the world's largest lithium producer".

Environmental impact

Like all mines, lithium mines significantly impact their surrounding environments. Most lithium mines in Australia are surface mines. The most immediate impact of these mines is the removal of all plants, soil and wildlife on the site of the mine. The mining process generates inhalable and respirable dust particles.

Australian lithium extraction has a higher carbon footprint than lithium mining elsewhere. This is primarily because Australian lithium mines use extremely carbon-intensive power sources, especially diesel, for extraction and processing, and because most of it is subsequently shipped to China for further processing, which also uses highly carbon-intensive fuels.

Investment in Australian lithium mining companies

Lithium may be extracted either by mining or from lithium brines. More capital outlay is needed for hard-rock spodumene mining than for lithium brines. This plays a role when identifying whether a project is worth an investment or conversely, if it should be abandoned.

Market demand is another major factor. The rapid growth and expansion of the electric vehicle sector has caused a surge in demand for lithium for lithium-ion batteries. This generates higher revenues for existing and new market entrants, as reported in the Sydney Morning Herald: "Pilbara Minerals managing director and chief executive Ken Brinsden said the demand for higher quality battery materials put WA in the drivers seat" The rising demand in the market for lithium "shows no signs of slowing" in Australia, which hosts the "highest economic concentrations of lithium via several hard rock deposits". However, as reported by the Australian Financial Review, as supply of lithium grows, the value of existing companies falls. Supply continues to grow as a royal settlement struck by Chilean producer SQM gives the company permission over the next 7 years to more than triple its production, also reported in the Sydney Morning Herald, "but federal forecasts in the resources and energy quarterly found while WA will be pulling out a record 419,000 tonnes of lithium ore spodumene from the ground, it won’t reap the same high prices the industry has experienced."

Battery production

The Australian Government is encouraging investment in the lithium industry. As of 10 April 2019, The Federal Government and the State Government along with industry had agreed to fund a new modern national lithium research centre valued at $135 million which "will operate out of Curtin University in Perth", for $53 million. The facility aims to make Western Australia a hub for battery-making and research surrounding lithium battery manufacturing.

References

1. Azevedo, Marcelo; Baczyńska, Magdalena; Hoffman, Ken; Krauze, Aleksandra (12 April 2022). "Lithium mining: How new production technologies could fuel the global EV revolution". McKinsey. Retrieved 22 April 2023.
2. Chew, Carman (22 April 2023). "Factbox: World's biggest lithium producers". Reuters. Retrieved 22 April 2023.
3. Nicholas, Lorna (26 February 2019). "Lithium stocks on the ASX: The Ultimate Guide". Small Caps. Retrieved 16 May 2019.
4. Chew, Carman (22 April 2023). "Factbox: World's biggest lithium producers". Reuters. Retrieved 22 April 2023.
5. Hastie, Hamish (2 October 2018). "Lithium 'buzz' could be worth hundreds of billions to Australia". The Sydney Morning Herald. Retrieved 15 May 2019.
6. Barrera, Priscila; Kelly, Lauren (28 March 2023). "7 Biggest Lithium-mining Companies in 2023". Investingnews.com. Retrieved 22 April 2023.
7. ^ Kurmelovs, Royce (11 November 2022). "How Australia became the world's greatest lithium supplier". BBC. Retrieved 22 April 2023.
8. Nicholas, Lorna (26 February 2019). "Lithium stocks on the ASX: The Ultimate Guide". Small Caps. Retrieved 16 May 2019.
9. Smith, Sean (3 September 2018). "Tiny WA town ground zero for global energy revolution". The West Australian. Retrieved 22 April 2023.
10. "Lithium Mining Market by Reserves and Production, Assets and Projects, Demand Drivers, Key Players and Forecast, 2022-2030". Yahoo Finance. Retrieved 1 May 2023.
11. ^ "Mount Marion Lithium Project". Mining Technology. April 2021. Retrieved 22 April 2023.
12. ^ "Pilbara Minerals, annual report 2018".
13. Ballard, Henry (19 April 2021). "Altura acquisition shows promise for Pilbara Minerals". Australian Mining. Retrieved 23 April 2023.
14. "Our Business | Pilbara Minerals". www.pilbaraminerals.com.au. Retrieved 11 May 2019.
15. "Pilbara minerals quarterly report" (PDF).
16. "Pilbara minerals expansion" (PDF).
17. "Map of Ravensthorpe, WA 6346 | Whereis®". www.whereis.com. Retrieved 17 May 2019.
18. ^ "Mount Cattlin Lithium Project, Western Australia, Australia". Retrieved 24 April 2023.
19. "Mt Cattlin Spodumene Project". Mining Technology. 21 June 2021. Retrieved 22 April 2023.
20. Ballard, Henry (25 October 2021). "MinRes, Albemarle to restart Wodgina as lithium lifts". Australian Mining. Retrieved 23 April 2023.
21. Beyer, Mark (19 November 2018). "Wodgina shows Pilbara mining diversity". Business News. Retrieved 23 April 2023.
22. ^ Perera, Alicia; Thompson, Jessie (10 October 2022). "Core Lithium opens the Northern Territory's first lithium mine amid surging demand for electric vehicles". ABC Australia. Retrieved 15 October 2022.
23. ^ "Finniss Lithium Project, Northern Territory, Australia". Mining Technology. 13 January 2022. Retrieved 13 October 2022.
24. Parker, Tom (18 April 2023). "Core Lithium boosts Finniss resource by 60%". Australian Resources & Investment. Retrieved 23 April 2023.
25. Matthis, Simon (17 March 2021). "Australia grants MPS for Core Lithium's Finniss lithium project". MiningMetalNews. Retrieved 13 October 2022.
26. "NT opens first lithium mine, supplying Tesla". PV Magazine. 13 October 2022. Retrieved 15 October 2022.
27. "Mine and concentrator". Covalent Lithium. Retrieved 10 December 2023.
28. "Refinery". Covalent Lithium. Retrieved 10 December 2023.
29. Sun, Kerry (5 April 2022). "Understanding the Allkem lithium growth story". marketindex.com.au. Retrieved 23 April 2023.
30. Geoscience, Australia. "Australian Mines Atlas". Australian Mines Atlas. Canberra, Australia: Geoscience Australia. Retrieved 6 November 2023.
31. Hofstra, A.; Lisitsin, V.; Corriveau, L.; Paradis, S.; Peter, J.; Lauzière, K.; Lawley, C.; Gadd, M.; Pilote, J.; Honsberger, I.; Bastrakov, E.; Champion, D.; Czarnota, K.; Doublier, M.; Huston, D.; Raymond, O; van der Wielen, S.E.; Emsbo, P.; Granitto, M.; Kreiner, D. (2021). "Deposit classification scheme for the Critical Minerals Mapping Initiative Global Geochemical Database". U.S. Geological Survey Open-File Report. Open-File Report. 2021–1049: 1-60. doi:10.3133/ofr20211049. Retrieved 6 November 2023.
32. Thurtell, David, ed. (March 2023). "Resources and Energy Quarterly: March 2023" (PDF). Australian Department of Industry, Science and Resources. Retrieved 4 August 2023.
33. Jaskula, Brian (August 2022). "2018 Minerals Yearbook: Lithium" (PDF). United States Geological Survey. Retrieved 4 August 2023.
34. Frost, Natasha (23 May 2023). "Australia Tries to Break Its Dependence on China for Lithium Mining". The New York Times. Retrieved 4 August 2023.
35. "Australia's spodumene exports to China rise in 1H 2022 | Argus Media". Argus Media. 8 August 2022. Retrieved 4 August 2023.
36. "United States Global Survey, 2019" (PDF). Archived from the original (PDF) on 18 January 2021.
37. "Argentina could help the world by becoming a big lithium exporter". The Economist. 15 November 2022. Retrieved 21 April 2023.
38. "United States Geological Survey, 2019" (PDF). Archived from the original (PDF) on 18 January 2021.
39. "World's ten largest lithium mines in 2020". Mining Technology. 7 September 2021. Retrieved 3 May 2023.
40. Adams, Troy (15 June 2022). "Lithium mining in Australia – history, top locations and companies". Global Road Technology. Global Road Technology International Holdings. Retrieved 1 October 2023.
41. Chordia, Mudit; Wickerts, Sanna; Nordelöf, Anders; Arvidsson, Rickard (December 2022). "Life cycle environmental impacts of current and future battery-grade lithium supply from brine and spodumene". Resources, Conservation and Recycling. 187: 106634. doi:10.1016/j.resconrec.2022.106634.
42. "Reserve Bank of Australia".
43. ^ Desjardins, Jeff (2 June 2015). "A Cost Comparison: Lithium Brine vs. Hard Rock Exploration". Visual Capitalist. Retrieved 16 May 2019.
44. Kenton, Will. "Cost of Capital: What You Need to Know". Investopedia. Retrieved 15 May 2019.
45. "INFOGRAPHIC: A cost comparison - lithium brine vs. hard rock exploration". MINING.com. 2 June 2015. Retrieved 11 May 2019.
46. FinancialNewsMedia.com. "Big Question Remains: Will Lithium Supply Meet Its Demand". www.prnewswire.com. Retrieved 15 May 2019.
47. "Lithium price: Battery capacity of electric cars doubles from last year". MINING.com. 6 May 2019. Retrieved 15 May 2019.
48. November 5, Rhys Brock |; PLS, 2018 | More on: GXY MIN ORE (5 November 2018). "Why I think these lithium miners offer great growth potential for investors". Motley Fool Australia. Retrieved 16 May 2019.{{cite web}}: CS1 maint: numeric names: authors list (link)
49. ^ Hastie, Hamish (7 April 2019). "Lithium export boom might not be felt for five years". The Sydney Morning Herald. Retrieved 15 May 2019.
50. Lucas, Jarrod; Daly, Jon (6 June 2018). "WA lithium booms from one mine to seven in two years". ABC News. Retrieved 15 May 2019.
51. "Lithium Reserves by Country". Golden Dragon Capital. Retrieved 15 May 2019.
52. ^ Ker, Peter (18 January 2018). "Expansion talk wipes billions off lithium miners". Australian Financial Review. Retrieved 11 May 2019.
53. Gumina, Teresa (22 March 2016). "Facilities - Science & Engineering | Curtin University, Perth, Western Australia". Science & Engineering. Retrieved 17 May 2019.
54. ^ Lynch, Jacqueline (10 April 2019). "Battery research centre puts Australia at 'cutting edge' of global lithium industry". ABC News. Retrieved 16 May 2019.

• Mining in Australia by mineral
• Lithium mining