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BAtteRY MIneRALs

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he collapse of Altura Mining Ltd in late October cast
T another dark cloud over the struggling lithium sector.
What was once the pacesetter in the battery minerals
revolution is now lagging at the back of the pack. However,
those companies which remain committed to developing
lithium projects are taking on board all the lessons learned
in a bid to ensure mistakes are not repeated when prices
have recovered enough to justify starting production.

ordaMentha was appointed receivers of
KAltura on October 26 after the company
conceded it could not attract enough support
for its $150 million recapitalisation effort aimed
at wiping away most of its climbing debt. Vol-
untary administrators were called in the next
day.
Receivership comes a little more than two proposal offered. economy.”
years after Altura officially opened its name- Pilbara Minerals was the obvious buyer for The collapse of two lithium companies so
sake lithium operations in the Pilbara and Altura given its Pilgangoora operations sit im- soon after entering production has cast doubt
only 14 months after fellow spodumene pro- mediately to the west. Both mines have been over the ability of other hopefuls in the space
ducer Alita Resources also entered voluntary producing spodumene for roughly the same to make it to market, especially while prices
administration. Mineral Resources Ltd has period. remain depressed and not forecast to hit their
also mothballed its Wodgina project, while “This potential acquisition represents a straps again for at least two more years.
the likes of Pilbara Minerals Ltd and Galaxy logical consolidation of two neighbouring op- Liontown Resources Ltd is one such devel-
Resources Ltd have had anything but smooth erations to unite the greater Pilgangoora ore- oper. The Tim Goyder-chaired company is fo-
rides since starting up their respective mines body, unlocking tangible synergies in both the cused on the Kathleen Valley lithium project,
in Western Australia. short and long term,” Pilbara Minerals man- about 350km north-northwest of Kalgoorlie,
Pilbara Minerals has put its hand up to aging director Ken Brinsden said in an ASX and recently published both an updated PFS
take control of the Altura operations, having announcement. for a standalone 2.5 mtpa mining and pro-
entered into an implementation deed with “If successful, the acquisition will cement cessing operation there, as well as a scoping
the senior secured loan noteholders of Altura Pilbara Minerals’ position as the largest pure- study for a potentially lucrative downstream
just two days after receivers were appointed. play ASX-listed lithium company by enter- option.
The conditional deal for the shares in Altura’s prise value and will provide strong leverage to Based on indicative timetables, Liontown is
operating subsidiary, valued at about $US175 the expected recovery in lithium prices, driven still four years away from commissioning an
million, is subject to completion of the receiv- by the increasing demand for electric vehi- operation at Kathleen Valley that is forecast to
ership process. cles and energy storage applications evident produce an average 350,000 tpa spodumene
Altura loan noteholders have reportedly across the world. concentrate and 430,000 tpa tantalum con-
agreed to vote in favour of Pilbara Minerals “We believe this will help safeguard jobs in centrate over a 40-year mine life.
taking control of the operations should the ac- the WA lithium sector and ultimately create Liontown managing director David Rich-
quisition proceed. Pilbara Minerals has also some exciting new growth opportunities that ards said his company had the luxury of time
procured the right to match any competing will deliver a range of benefits for the local on its side given spodumene prices were

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