Liontown approves $389M Kathleen Valley expansion
- Liontown Resources approved the $389 million expansion of its Kathleen Valley Lithium Project.
- FY27 capital expenditure guidance was updated to $435–$495 million following the board approval.
- The expansion aims to lift five-year steady-state concentrate production to approximately 780,000 dmt annually from FY30.
Liontown Resources (ASX:LTR) approved the expansion of its Kathleen Valley Lithium Project with an approved capital expenditure of $389 million.
The board decision raises targeted five-year steady-state spodumene concentrate production to approximately 780,000 dmt per year starting in FY30, up from the current ore processing capacity of 2.8 Mtpa to 4.2 Mtpa.
The expansion scope includes $145 million for forming development and resource drilling, along with $244 million for processing and non-processing infrastructure additions.
Liontown's Managing Director and CEO, Tony Ottaviano, said, "The Kathleen Valley Expansion is expected to lift our concentrate production by over 50% to a five-year average of 780,000 dmt from FY30, making Kathleen Valley one of the most significant hard-rock operations in the world."
The company stated that the expansion is scheduled for completion by the end of Q2 FY29 and is expected to create 210 construction jobs plus 185 ongoing operational roles.
Following the announcement, the Liontown Resources share price was up at $0.95.
The company maintained its FY27 concentrate production guidance of 390,000–440,000 dmt and unit operating cost guidance of $1,050–1,250/dmt sold.
Liontown expects to fund the expansion through existing cash and operating cash flows while selling additional concentrate volume via spot sales and potential new offtake arrangements.
