IGO has announced an updated budget and timeline for its chemical grade plant 3 (CGP3) project underway at the Greenbushes lithium mine in Western Australia.
The CGP3 project, aimed at bolstering Greenbushes’ lithium production capacity, has faced rising costs due to industry-wide inflation, design changes and some project delays.
Following a thorough review, the total estimated project cost has increased to approximately $880 million, with around $270 million still needed to complete the project as of the end of September 2024.
First ore to the CGP3 plant is now expected in the second quarter of the 2026 financial year, marking a revised timeline for the expansion.
“CGP3 forms an important part of Greenbushes’ near-term growth strategy and will add approximately 500,000 tonnes per annum (tpa) of additional spodumene concentrate production capacity once complete,” IGO managing director and chief executive officer Ivan Vella said.
Despite current lithium market softness, Vella noted the mine’s robust financial performance.
“While market conditions for lithium are currently subdued, the strong margins and cash generation being achieved by Greenbushes is enabling reinvestment in growth which will further cement its position as the world’s leading hard rock lithium operation,” he said.
In other recent news on Greenbushes, IGO reported it had a strong performance in the first quarter of the 2024–25 financial year (Fy25), delivering robust production and consistent cash flow.
Despite a softening in commodity prices and reduced nickel revenues, Greenbushes continued to exceed expectations, producing a quarter-on-quarter increase in spodumene output.
“Operational performance at Greenbushes has been strong with an uplift in quarter-on-quarter production,” Vella said.
“Greenbushes’ productivity not only bolstered IGO’s position but also provided a solid foundation for future growth, aligning with the company’s long-term strategy to drive success through to 2035.”
While fluctuations in lithium and nickel prices impacted financial results, IGO’s strategic focus on operational efficiency helped maintain resilience.
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