Australian engineering services company Lycopodium will continue as EPCM provider at Liontown Resources’ A$470 million Kathleen Valley lithium project in Western Australia under a A$35 million (US$25m) contract.
ASX-listed Liontown is fully funded to build the proposed long-life lithium mine, based on the “globally significant” mineral resource of 156 million tonnes grading 1.4% Li2O in its 2021 definitive feasibility study, and is aiming to finish construction by the end of 2023 and start production in the June quarter of 2024.
Lycopodium’s base engineering studies and costings informed Liontown’s DFS and it has since been engaged to do front-end engineering design (FEED) work that kept the DFS engineering team focused on Kathleen Valley and enabled Liontown to award A$103m of long-lead mechanical equipment and infrastructure contracts for the proposed 500,000 tonnes per annum spodumene concentrate plant.
Liontown’s confirmed offtake partners include Tesla, Ford and Korean auto-battery maker LG Energy.
The developer’s share price is up more than 18% in the past month, capitalising the company at about A$2.65 billion.
Lycopodium’s share price has also surged about 20% in the past month, capitalising it at A$246m.