Greenbushes miner posts $6.28bn profit

The owner of Australia's largest lithium mine has defied a fall in the commodity’s price to post a near-doubling in full-year profit to $6.28 billion.

The mine, which is located 90km south-east of Bunbury in Western Australia's south-west, is operated by Talison Lithium - a holding company owned by US-headquartered Albemarle, IGO and Tianqi Lithium Energy Australia.

Talison's net profit of $6.28b in 2023 - of which $6.27b was paid in dividends - rose from $3.26b during the prior corresponding period.

Along with its revenue increasing by 77 per cent to $9.8b last year, annual production of spodumene concentrate also increased in 2023, from 1 million tonnes to 1.5 million tonnes.

IGO forewarned the market in January that production at Greenbushes would be somewhat reduced in the first six months of 2024, due to both Albemarle and Tianqi ordering less spodumene concentrate than anticipated.

A month later in its half year report, IGO reiterated its decision to amend its production guidance at Greenbushes to 1.3-1.4 million tonnes for the 2024 financial year - which it said was reflected in Talison's need to manage stockpiles and overall production following reduced uptake. 

"IGO maintains its FY24 guidance for sustaining, growth and deferred stripping capex at Greenbushes between $850 million and 950 million, but notes the joint venture partners, being Tianqi and Albemarle, are continuing to review and optimise capital expenditure at Greenbushes," the company said.