Lithium output rises, nickel falls at Australia’s IGO

Australian lithium producer IGO posted mixed production results for the first half of 2023-24, with higher lithium output but lower nickel volumes.

Spodumene production from Western Australia's (WA) Greenbushes operations rose by 4.2pc from a year earlier to 771,406t during July-December 2023, driven up by higher lithium ore grades at 2.68pc. The company has cut Greenbushes' spodumene production guidance for 2023-24 to 1.3mn-1.4mn t from 1.4mn-1.5mn t on the back of lower sales.

IGO produced 1,224t of lithium hydroxide for July-December at its Kwinana refinery in WA, up by 57pc on a year earlier with increased production rates. But further improvements and process rectifications need to be implemented to raise its production capacity and consistency, the company said.

Nickel concentrate production from the Nova operations in WA were 9,876t during July-December, falling by 8.6pc from a year earlier. This was mainly affected by lower nickel recovery rates and nickel grade at 85pc and 1.5pc respectively from the previous year's recovery rates at 86pc and grade at 1.8pc. Copper concentrate output from the same asset remained largely steady at 4,806t over the same period.

The firm's Forrestania operations in WA produced 4,374t of nickel in concentrate in the first half of 2023-24, falling by 29pc from a year earlier, following a planned closure of the Flying Fox mine in November 2023.

Total nickel production guidance for 2023-24 fell to 28,500-31,000t from 29,000-32,500t, with Forrestania's guidance unchanged at 7,500-9,000t and Nova's guidance reduced slightly to 21,000-22,000t.

IGO announced on 31 January it was putting the Cosmos project in WA into care and maintenance, largely because of the slump in global nickel prices. The transition phase is expected to be completed by 31 May.

Benchmark prices for class 1 nickel on the London Metal Exchange have fallen by 35pc to $17,232.50/t on 22 February from $26,475/t a year earlier.

By Sheih Li Wong