IGO: ‘No pathway’ for Kwinana even as lithium rebounds
IGO: 'No pathway' for Kwinana even as lithium rebounds
A recovery in lithium prices has strengthened IGO’s (ASX: IGO) Greenbushes operation, but the miner says Kwinana remains a high cost asset with “no pathway” to appropriate returns.IGO expects the lithium market's strong price growth to continue into early 2026. Average realised spodumene price increased 16% in Q2 to $1200/t (US$850/t).Despite a positive price environment, lithium hydroxide production at Kwinana declined to 35% of nameplate capacity in Q2 due to plant maintenance shutdown in late October and early November.“Kwinana production was impacted by a maintenance outage but demonstrated about 50% capacity utilisation in December,” IGO managing director and chief executive Ivan Vella said.“As IGO has noted previously, even with higher production and lithium hydroxide prices, we see the refinery as a high cost asset with no pathway to appropriate returns.”Greenbushes production was up 10% in the quarter reflecting increased ore mined and an improvement in grade following Q1’s grade and weather impacted volumes.Spodumene sales at Greenbushes were higher than the previous quarter but remain below production.“Greenbushes spodumene production improved to 352kt, after a weaker first quarter impacted by grade and weather,” Mr Vella said.“CGP3 construction was completed and first ore processed in December.“This is a significant milestone. While some schedule slippage and capex increase was experienced earlier in the project, it is pleasing that the asset is now ramping up in a strong market. We will be looking to maximise production from the asset in H2 FY26.”Nova delivered 3.8kt of nickel and 1.8kt of copper in the quarter. The operation is expected to reach its end of life by late 2026.“The Nova operation is being managed well,” Mr Vella said.“For its remaining life, the focus is on safety, stable production and managing costs. The operation is still generating positive free cash and selling into a strengthening nickel market.”IGO saw a further improvement in TRIFR, down to 5.8 from 8.0 in Q1, which the miner says is the result of its continued focus on harm prevention and safety culture.