Liontown Resources Limited (ASX: LTR) has awarded a key contract to Metso-Outotec for the design, fabrication and delivery of a Semi Autogenous Grinding (SAG) Mill for its flagship Kathleen Valley Lithium Project in Western Australia.
Following the completion of the Definitive Feasibility Study (DFS) for Kathleen Valley in November 2021, the company 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.
The contract, which has a value of ~A$10 million and is in accordance with DFS estimates, is for the design, fabrication and delivery of a 7.9m (26”) diameter and 4.4m effective grinding length 5.5MW SAG Mill.
This is inclusive of all lining, lubrication, cooling, electrical and mechanical drive systems necessary for installation and commissioning.
The SAG Mill will accommodate both base production of 2.5Mtpa and the planned expansion to 4Mtpa in Year 6 of the mine plan.
The SAG Mill is one of several critical long-lead items identified for early award and represents the largest single piece of equipment required to be purchased for the Project by size, value and lead time.
Detailed engineering and design for the A$473 million Kathleen Valley Project continues and Liontown is targeting the award of all key equipment packages over the next six months to maintain schedule and meet its target of first production of lithium concentrate in 2024.
Metso-Outotec is a class-leading processing equipment supplier with multiple comparable mill installations in operation across the world. It is a frontrunner in sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries globally. Liontown’s Managing Director and CEO, Tony Ottaviano, said other key project deliverables including final permitting and securing the Engineering, Procurement & Construction Management (EPCM) partner to build and commission the Kathleen Valley Project are progressing to meet the targeted Final Investment Decision (FID) milestone by the end of Q2 2022.
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,” Mr 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
“Detailed engineering and design work continues to advance, with the vompany’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.
“This will enable us to lock-in production slots, maintain our development schedule and meet our target of achieving first lithium concentrate production in 2024.”