Liontown Resources has commenced production at Kathleen Valley, Western Australia, marking the country's first underground lithium mine. The transition from open-pit to underground operations is expected to improve lithium recovery, reduce waste contamination, and enhance ore processing.
The miner, which began producing spodumene concentrate last July, revised its production targets last November to 2.8 million tonnes per year by 2027, down from its previous 3 million tonnes per year goal by early 2025, aiming to preserve cash amid declining lithium prices.
Liontown plans to fully transition to underground mining by the end of the 2026 financial year. The first stope firing at the Mt Mann ore body extracted 12,000 tonnes of ore, confirming the viability of underground operations, with a head grade of 1.5% lithium oxides and recoveries exceeding 70%.
CEO Tony Ottaviano praised the milestone, attributing the success to strategic planning and strong collaboration with mining partner Byrnecut.
