Mt Marion mine. Image: Neometals.
BY ELIZABETH FABRI
GOLD and nickel have been the lifeblood of WA’s Goldfields region for 125 years. But this is about to change – newcomer lithium is taking a seat at the table as demand for battery metals signals new opportunities in downstream processing.
Neometals’ plan to build a 10,000 tonnes per annum lithium hydroxide production facility moved a step closer after it inked a deal to sub-lease a site in West Kalgoorlie for the refinery in early June.
The proposed 40 hectare property is 5km from Kalgoorlie, and only 70km from its Mt Marion lithium operation, which is jointly owned with majority partner Mineral Resources.
The site’s proximity is a huge shot in the arm for Kalgoorlie and its people, with more than 300 construction jobs and 100 operational positions up for grabs.
“This is one of the biggest economic shake ups for the City in a long period,” Kalgoorlie-Boulder Chamber of Commerce and Industry chief executive Simone de Been said.
The project marks a new era for the region, as it moves beyond mining into value-added materials.
Neometals chief executive Chris Reed said the company had been investigating sites for some time and the Kalgoorlie location made “a lot of sense”.
“Kalgoorlie is not only very close to our Mt Marion operation and all the services that a first-class mining town brings, but it also provides a cost advantage owing to the removal of transport, shipping and taxes,” Mr Reed said.
“Reducing transport reduces the environmental footprint which supports margins, but it’s also a critical consideration for the end users who must account for the full life cycle of the materials they consume.
“Add to that Kalgoorlie’s land availability, leasing rates, access to power/water/gas/ and a willing local workforce, and the location becomes very compelling.”
A final investment decision on plant construction was expected in the June quarter of 2019.
Downstream Processing Push
On the same day as Neometals’ announcement, the City of Kalgoorlie-Boulder and the Kalgoorlie-Boulder Chamber of Commerce and Industry’s (KBCCI) held the inaugural Kalgoorlie Boulder Economic Development Conference in Perth.
Mr Reed presented at the event, but was not the only one spreading the Goldfields lithium buzz.
Keynote speaker Bulls N’ Bears managing director Matt Birney’s speech was all about the opportunities in lithium downstream processing.
“Lithium represents the most profound business opportunity of our generation, not just for Kalgoorlie-Boulder and the Goldfields but for the State of WA,” Mr Birney told delegates.
“WA has the largest lithium deposits in the world today – lithium is generally found where greenstone mineralisation meets granite mineralisation and that is how you describe the Goldfields region.
“If you think all of the big lithium mines have been found, then think again.”
Lithium mines in the Goldfields region included the Mineral Resources and Neometals Mt Marion project, Tawana Resources’ Bald Hill mine near Kambalda, Galaxy Resources’ Mt Cattlin project north of Ravensthorpe, as well as Kidman Resources’ Mt Holland mine near Southern Cross, which is due to enter production next year.
Mr Birney said WA was just at the beginning of the lithium cycle, with another 100 years’ worth of opportunities in the Goldfields alone.
However, he warned the industry must learn from past mistakes, particularly in iron ore.
“We don’t want to just dig this stuff up and ship it to the Chinese where they are making incrementally higher margins than we do,” he said.
“We actually have an opportunity to set the play for the lithium industry, and I say Kalgoorlie-Boulder is uniquely positioned to do just that.
“We must look at downstream processing opportunities for lithium rather than dig it out of the ground, maybe upgrade it slightly, then send it to China.”
Mr Birney congratulated Neometals on its decision to build a plant in Kalgoorlie, and urged other companies to follow.
“Kidman Resources are investigating building a downstream battery metals processing plant in Kwinana,” he said.
“Why are they building their plant in Kwinana? What are the economic metrics? How do we make the environment better for those people, because Kidman’s deposit is in the Goldfields; why would they take it out of the Goldfields and process it at Kwinana?”
The Bald Hill lithium mine commenced production in March 2018. Image: Tawana Resources.
Refining a Lithium Strategy
CSIRO Mineral Resources program director Chris Vernon and CPC Engineering chief executive Glen Weir threw their support behind the idea.
“I think Kalgoorlie-Boulder is an excellent place for processing battery minerals,” Mr Vernon said.
“You’ve got the raw materials, and trust me; the science behind making those high-purity materials is not that much of a challenge.
“We’re going to hop on board, we think it’s going to be the best thing since sliced bread and it’s going to be great for Kalgoorlie-Boulder.”
Mr Weir added that labour and haulage costs were generally the biggest challenges, so for a mine close to Kalgoorlie it would be beneficial to process and refine it locally.
“Obviously you have to do the sums, but I think there would be a great opportunity,” Mr Weir said.
Mr Weir said CPC Engineering had recently worked very closely with Lithium Australia on a potential large scale pilot plant in Kambalda.
“There is great opportunities there to prove that technology on a large scale, and to use that to assist downstream processing,” he said.
Building a Knowledge Economy
A technology and innovation hub was also an emerging opportunity in Kalgoorlie.
With so many mines at its doorstep as well as Curtin University’s WA School of Mines, it made sense to cement Kalgoorlie as a centre of excellence in hard rock processing and engineering training.
Building a knowledge economy was one of the key elements of the region’s Growth Plan, and included investment in facilities, research, marketing, additional educational opportunities and increased engagement with industry.
City of Kalgoorlie-Boulder executive manager economy and growth Alex Wiese said there was a lot of great work happening with the WA School of Mines, CRC ORE and the CSIRO.
“We’ll actually see great advances and commercial prototypes being tested in the Goldfields in operation conditions, which we hope will lead to a whole range of different efficiencies, improved cost structures for mines, and huge growth in resources in the Goldfields,” Mr Wiese said.
“We are also looking to try and address the bigger picture around power.
“I think there is some really exciting things on the horizon and the City is actively engaged with businesses at all levels and research, and I think part of that success (if you look at international evidence) is trying to partner research capacity with industry, and we’re very keen to see that happen not only at a mining level but at a METS level.”
CPC Engineering’s Mr Weir said Kalgoorlie had been a centre for many years for technological advances but in recent years it has been difficult to retain the skilled people in Kalgoorlie.
“The mining industry owes a lot to the School of Mines and the quality of people that have come out of there,” Mr Weir said.
“That excellence is still there, but…it’s more a question these days of how do we attract people to Kalgoorlie?”
A Residential Workforce
Mr Weir said coming from someone who had lived in Kalgoorlie, it was “one of the best places you could ever live”.
“The culture is fantastic; what we have to do is let the rest of the world know about it,” he said.
City of Kalgoorlie-Boulder’s Mr Wiese said there was a focus group currently working with the City to develop a tourism strategy – particularly around Aboriginal cultural experiences and a new 120 bed resort that will be built at the Golf Course – to entice more people to visit the region.
An $8 million Kalgoorlie City Centre project was also underway to revitalise the town.
Then there was the issue of enabling people to get access to the Goldfields at the right price.
“We certainly have a very strong self-drive market (people that are four wheel driving and caravanning across Australia), but I think we would unlock enormous potential if we can get airfares around $200 consistently between Kalgoorlie and Perth, or Kalgoorlie and Melbourne,” Mr Wiese said.
KCCI’s Ms de Been said the chamber recently held a Kalgoorlie Jobs Expo in Perth to showcase what the region had to offer, and all the vacant positions available.
“It is an exciting time for the Goldfields, there is certainly a lot happing around the Goldfields,” she said.
“Gold and nickel prices are up and all the talk is currently on lithium.
“The town is buzzing with new opportunities.”
