Lithium jobs at risk as Arcadium pauses Mt Cattlin mine
Western Australia’s resources industry has taken another hit after a major lithium mine was mothballed amid ongoing weak prices for the battery making material.
Western Australia’s resources industry has taken another hit after a major lithium mine was mothballed amid ongoing weak prices for the battery making material.
Arcadium Lithium said its Mt Cattlin mine near Esperance would be put into care and maintenance after it completed stage 3 mining and ore processing by the end of the first half of 2025. Several hundred jobs could be under threat as a result of the decision.
Lithium is a key ingredient in batteries used in electric vehicles, helping spark a wave of new mine developments in Australia. However, a global stream of new supplies has outpaced demand, leading to a steep fall in the commodity price.
Arcadium said it did not intend to close Mt Cattlin at this time.
“Care and maintenance will keep the mine and processing facilities in a position to potentially resume operations when market conditions become more favourable. Arcadium Lithium will continue to explore the viability of underground mining at the Mt Cattlin site, which could potentially extend the remaining mine life,” the company said in a statement.
Tumbling prices have taken the wind out of the Australian lithium sector, delaying new entrants such as Core Lithium.
The price of lithium concentrate has slumped as much as 80 per cent over the last 18 months, and was recently sitting at less than $US1000 a tonne, according to some price estimates.
Albemarle previously slashed 300 jobs in Australia to respond to the industry headwinds, as it shelved the construction of a production unit at Kemerton, south of Perth, and a third production unit at the facility near Bunbury, and mothballed its second unit.
Several lithium mines have closed in the past year, including Core Lithium’s Grants mine near Darwin, while Mineral Resources announced its Yilgarn iron ore operations would close by the end of the year.
Arcadium said it would provide further details on its decision at its investor day on September 19.
“We remain committed to developing our global portfolio of hard rock assets and are confident that they will continue to be a significant part of Arcadium Lithium’s growth story,” Arcadium chief executive Paul Graves said.
“Unfortunately, production at Mt Cattlin beyond the current stage of the open pit cannot be justified in the current price environment for spodumene.
“We will maintain open and transparent dialogue with all of our stakeholders while supporting our employees and communities in Western Australia during this transition period.”
Thousands of jobs have been shed in Western Australia’s mining sector this year amid volatile commodity prices in industries including lithium and nickel.
The price of nickel has tumbled from levels above $US30,000 a tonne in early 2023 in the face of a flood of cheap new supply from Indonesia.