Arcadium Lithium to put Mt Cattlin into care and maintenance in mid-2025

Arcadium Lithium (ASX: LTM) will suspend stage 4A waste stripping at its Mt Cattlin spodumene operation in WA given the continuing decline in spodumene prices.

Additionally, Arcadium Lithium plans to place Mt Cattlin into care and maintenance after it completes stage three mining and ore processing in the first half of 2025.

By placing Mt Cattlin into care and maintenance, operations can potentially resume when the market conditions become more favourable.

Arcadium Lithium will continue to explore the viability of underground mining at Mt Cattlin which could potentially extend its mine life.

Company president and chief executive Paul Graves commented on the news.

“We remain committed to developing our global portfolio of hard rock assets and are confident they will continue to be a significant part of Arcadium Lithium’s growth story,” he said.

“Unfortunately, production at Mt Cattlin beyond the current stage of the open pit cannot be justified in the current price environment for spodumene.

“We will maintain open and transparent dialogue with all of our stakeholders while supporting our employees and communities in WA during this transition period.”

As a result of these decisions, Arcadium Lithium expects to increase net expected cash flow in 2024 and 2025 cumulatively by around $111m – $148m (US$75m – $100m).