News Room - Business/Economics

Posted on 14 Apr 2025

Liontown starts Australia's first underground lithium mine

Australian miner Liontown Resources commenced production at the country’s first underground lithium mine at its Kathleen Valley operations in Western Australia, Kallanish learns.

The company says the start of underground production is a “key milestone” in the transition from open pit to underground operations. Liontown expects the underground mine to offer reduced dilution from waste contamination, higher lithium recoveries and improved ore fragmentation for optimised processing compared to the traditional open pit operations in Australia.

The miner started producing spodumene concentrate at Kathleen last July. Last November, it trimmed the project’s production targets to 2.8 million tonnes/year from the end of fiscal year 2027, down from the previous 3m t/y by Q1 2025. The decision came in a bid to preserve cash amid the lithium price slump.

Liontown aims to transition to solely underground mining by the end of 2026 financial year. This week, the first stope firing at the Mt Mann ore body extracted around 12,000 t of ore, equivalent to two days of plant production. Output follows trials in March, which confirmed the processability of the underground ore, with a head grade of 1.5% lithium oxides and recoveries exceeding 70%.

“The successful commencement of underground stoping at our Kathleen Valley lithium operation on schedule is a proud milestone for Liontown,” says ceo Tony Ottaviano. “This achievement was made possible by advanced planning, the dedication of our team and the support from our mining partner, Byrnecut, ensuring the first stope blast at Mt Mann proceeded as planned.”

Source:Kallanish