EPA approval for big Greenbushes investment

A big expansion of lithium production at the Greenbushes mine is a step closer after Talison Lithium was given environmental approval for its plans to lift output to 2.8 million tonnes per annum.

The planned investment will include two more chemical grade processing plants, which will bring the total number to four, and a tailings retreatment plant.

The company is already close to completing its second processing plant, as part of a broader move to double production to around 1.2mtpa.

Greenbushes already produces a big portion of the world’s lithium supply, representing about 29 per cent of the market in 2017.

But the metal’s use in batteries has supported a big lift in demand, and some of Greenbushes’ output will be trucked to refining operations planned by Tianqi Lithium in Kwinana and Albemarle Corporation in Kemerton.

Tianqi and Albemarle are joint owners of Talison.

The building of a third processing plant has already been approved by the company’s board, at a cost of $516 million.

Site works had been planned to start in early 2019, with commissioning scheduled in the final quarter of 2020.

“Talison Lithium welcomes the Environmental Protection Authority recommendation to the state government to approve this important expansion of our Greenbushes lithium mine,” Talison chief executive Lorry Mignacca said in a statement.

“The expansion will generate hundreds of new jobs in WA’s South West, allow Talison to retain its status as the world’s leading lithium mineral concentrate producer and enable a new downstream industry in Western Australia to feed the clean energy revolution.

“We believe we have been meticulous in our approach to minimising the environmental impact of our expansion, and wherever possible have sought alternatives or offsets to further reduce any impact.

“We have a proud track record of community focus and a demonstrated commitment to our environment and are pleased that this approach has been recognised by the EPA.”

On Monday, a joint venture of Monadelphous and Lycopodium was awarded an engineering, construction and procurement contract for the tailings retreatment plant at the project worth about $100 million.

That will be a short term project to boost supply while the two plants are commissioned.

In March, Talison resolved an ongoing legal dispute with Global Advanced Metals regarding the treatment of tantalum at the mine.

“The agreement enables GAM to significantly expand its processing of GAM-owned tantalum concentrate at its secondary processing plant at Greenbushes, using tantalum derived as a by-product of lithium mining at Greenbushes, while continuing its expansion of tantalum by-product processing from other lithium mining locations in Western Australia,” GAM said at that time.