Australian mining company IGO reported lower-than-expected volumes from the Western Australia Greenbushes lithium mine in the first half of FY24, with anticipated second-half sales to be approximately 20% lower than production.

Following discussions with its joint venture partners and amid declining lithium prices, the company introduced changes to the pricing mechanism for spodumene concentrate off-take volumes from its Greenbushes operation.

The new pricing agreement will be reset monthly and be linked to the average values of the prior month, calculated from the average of four price reporting agencies, less a 5% volume discount.

The company foresees a reduction in spodumene concentrate volumes and production during the latter half of FY24 and lowered its production guidance for FY24 to 1.3-1.4 million tonnes from 1.4-1.5 million tonnes.