Liontown Resources has awarded a key contract to Metso Outotec for a semi-autogenous grinding (SAG) mill for its Kathleen Valley lithium project near Leinster in Western Australia (WA).
The approximately $10 million contract is for the design, fabrication and delivery of a 5.5-megawatt, 7.9m diameter and 4.4m effective grinding length SAG mill.
This is inclusive of all lining, lubrication, cooling, electrical and mechanical drive systems necessary for installation and commissioning.
“The SAG mill contract is the first of the long-lead items to be ordered and represents an important milestone for the Kathleen Valley project,” Liontown managing director and chief executive officer Tony Ottaviano said.
“Placing this significant order with a world-class partner in Metso Outotec is a great way to start the year and reflects our commitment to advance the Kathleen Valley project rapidly towards first production.”
The SAG mill will accommodate both base production of 2.5 million tonnes per annum (Mtpa) and the planned expansion to 4Mtpa in the sixth year of the mine plan.
Following the completion of the definitive feasibility study for Kathleen Valley in November 2021, Liontown has completed further engineering optimisation to confirm the scope and duty of the SAG mill to a sufficient level of detail to enable it to place the order with Metso Outotec.
“Detailed engineering and design work continues to advance, with the company’s recent $450 million share placement ensuring that Liontown is well capitalised to progress the Stage 1, 2.5Mtpa development at Kathleen Valley, including the early award of the SAG mill and other key long-lead items,” Ottaviano said.
The $473 million Kathleen Valley project is scheduled to meet its target of first production of lithium concentrate in 2024.