$6.6m for SW rail study

Talison Lithium will lead a study into reopening the Greenbushes rail line in a move that would take trucks off the South West Highway but may create new disruption for motorists.

The Greenbushes to Bunbury rail line, originally developed for the timber industry, was shut down 15 years ago.

Talison Lithium and the state government have agreed to jointly fund a $6.6 million study into reopening the line, to handle the increased volume of production from the company’s Greenbushes mine.

The mine’s production of spodumene concentrate has increased to about 1.5 million tonnes per year, resulting in 135 truck movements per day on the South West Highway.

Production at the mine is expected to increase to 2.1 million tonnes per year, equating to 200 trucks movements per day.

The move to rail would reduce truck movements but means motorists would need to contend with multiple level crossings between Bunbury and Greenbushes.

The winding highway and the rail line intersect about half a dozen times on the 80km route.

The study, due to be completed in the second half of 2024, will assess the cost of reinstating the track, level crossings and new terminal facilities in the Greenbushes and Bunbury areas.

It will also assess joint funding by Talison, Arc and the government.

The spodumene concentrate produced at Greenbushes is currently exported via the Port of Bunbury.

That will change in future, as the mine’s two major shareholders – China’s Tianqi Lithium and US company Albemarle Corporation – have built lithium refineries at Kwinana and Kemerton respectively.

The concentrate provides the feedstock for the refineries, which are going through a long commissioning process currently.

As they start operating more efficiently, and as their owner’s proceed with expansion plans, they will utilise most of the concentrate produced at Greenbushes.

Today’s announcement did not provide any details on how concentrate would be transported to the refineries.

The new study follows a pre-feasibility study conducted by the South West Development Commission in partnership with Talison and Arc.

That was completed in 2020 after which the government allocated $3.8 million for further studies.

Regional Development Minister Don Punch said the new study recognises the significant production increases and bright future for lithium projects in the South West as well as the potential to reduce the use of the region’s roads by heavy trucking.

“A recommissioned Bunbury-Greenbushes rail link would also provide the impetus for greater use of the broader rail freight network linking the region with Perth,” he said.

Transport Minister Rita Saffioti was cautious on the likelihood of reopening.

“Whilst there are significant positives such as reducing congestion, cutting emissions and improving road safety, we need to understand in detail what would be required to recommission the train line and the associated costs,” she said.

Talison Lithium CEO Lorry Mignacca said the company was hopeful the results of the study will lead to decisions late next year to recommission the railway line.

Arc Infrastructure CEO Murray Cook said his company has been working with Talison and the government for several years on this initiative and was delighted to commence detailed studies.

“Arc looks forward to a successful outcome from the study and making a significant investment to upgrade the Greenbushes Railway Line to support Talison moving this important task from road to rail.”

Shadow treasurer and member for the South West Steve Thomas expressed scepticism about the process the state government was pursuing.

“In 2020, the Labor government did a study into re-opening the line, which indicated costs up to nearly $300 million,” Mr Thomas said.

“The government sat on that study and did nothing.

“Now in 2023 the Labor government has announced another study.

“This saga has been dragged out for two decades, and the current transport minister Rita Saffioti has again kicked the can down the road.”