Geomechanics.io

  • Free Tools
Sign UpLog In

    Geomechanics.io

    Geomechanics, Streamlined.

    © 2026 Geomechanics.io. All rights reserved.

    Geomechanics.io

    CMRR-ioGEODB-ioHYDROGEO-ioQCDB-ioFree Tools & CalculatorsBlogLatest Industry News

    Industries

    MiningConstructionTunnelling

    Company

    Terms of UsePrivacy PolicyLinkedIn
    Projects

    IGO sees no path forward for WA lithium refinery: cost and margin lessons for mines

    November 19, 2025|

    Reviewed by Joe Ashwell

    IGO sees no path forward for WA lithium refinery: cost and margin lessons for mines

    First reported on MINING.com

    30 Second Briefing

    IGO has ruled out any viable path for the Kwinana lithium hydroxide refinery in Western Australia, after three years of operation delivered only 35% of nameplate capacity on average and a September-quarter EBITDA loss of A$19.6 million despite lifting output to 2,775 tonnes at A$14,177/t conversion cost. CEO Ivan Vella cited structurally high Australian energy and labour costs and the lack of downstream processing clusters, arguing that even at full nameplate the asset would remain uneconomic. By contrast, TLEA’s 51%-owned Greenbushes mine produced 1.48Mt of spodumene concentrate at A$325/t, generating A$1.5 billion cashflow and a 66% EBITDA margin, with Chemical Grade Plant 3 set to add 500,000t/y capacity by year-end.

    Technical Brief

    • Train 2 construction at Kwinana has been suspended, with only Train 1 partially operating.
    • IGO has already booked a A$605 million impairment against the Kwinana refinery asset.
    • Ownership of Kwinana sits within Tianqi Lithium Energy Australia, 51% Tianqi Lithium and 49% IGO.
    • Tianqi has publicly stated it has no plans to suspend refinery operations, despite IGO’s stance.
    • IGO reports ongoing, complex JV negotiations with Tianqi over both Train 1 operations and Train 2’s future.
    • Management describes Kwinana as a “challenged asset” even after global benchmarking against other lithium hydroxide plants.
    • Structural cost issues cited include high Australian energy and labour costs and absence of downstream processing clusters.

    Our Take

    With Greenbushes generating A$1.5 billion in cashflow at unit costs of A$325/t and a 66% EBITDA margin, the contrast to Kwinana’s A$19.6 million quarterly EBITDA loss underlines why upstream spodumene concentrate exposure in Western Australia currently looks far more defensible than downstream hydroxide refining in our mining project coverage.

    The A$605 million impairment at the Kwinana lithium refinery effectively prices in a structural cost disadvantage of roughly 2–3x versus peers, signalling that any future restart or repurposing would likely require either subsidised power/chemicals in WA or a step-change in process design rather than incremental debottlenecking.

    The presence of a 13Mt measured and indicated tungsten trioxide resource in Portugal in the same portfolio highlights that IGO and its partners are not purely lithium‑dependent, which in our database tends to give operators more room to mothball or rationalise high-cost lithium assets without jeopardising group-level cashflow stability.

    Geotechnical Software for Modern Teams

    Centralise site data, logs, and lab results with GEODB-io, CMRR-io, and HYDROGEO-io.

    No credit card required.

    • Save and export unlimited calculations
    • Advanced data visualisation
    • Generate professional PDF reports
    • Cloud storage for all your projects

    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

    Related Articles

    Copi critical minerals project: approvals and capex lens for mine planners
    Mining
    about 18 hours ago

    Copi critical minerals project: approvals and capex lens for mine planners

    New South Wales has approved RZ Resources’ A$693 million Copi mineral sands mine, designed to produce up to 400,000 tonnes of critical mineral ore per year over an 18‑year life from a deposit 75 km northwest of Wentworth. The operation will supply titanium minerals (rutile, leucoxene, ilmenite), premium zircon and rare earths (monazite, xenotime), feeding RZ’s existing mineral separation plant on the Brisbane River, the only major facility of its type on Australia’s east coast. Backing from JX Advanced Metals, Marubeni and prospective US EXIM financing signals strong geopolitical interest in Copi’s role in Quad-aligned supply chains.

    Mining
    about 22 hours ago

    ABB–Point Laz mine hoist inspection JV: integrated monitoring insights for engineers

    ABB has formed a strategic partnership with Point Laz to integrate the Lazaruss™ mine shaft monitoring system into ABB’s mine hoist portfolio, targeting safer and more reliable hoist inspection in deep underground shafts. The collaboration focuses on an integrated service offering that combines continuous shaft condition monitoring with hoist control and maintenance planning, moving inspections away from purely manual, periodic checks. For engineers, this signals growing scope to link hoist performance data with real-time shaft integrity information for earlier detection of lining, guide and conveyance issues.

    Vizsla $10m FIFOMI loan for Panuco: project economics and risk notes for engineers
    Mining
    1 day ago

    Vizsla $10m FIFOMI loan for Panuco: project economics and risk notes for engineers

    Vizsla Silver has secured a 173 million peso (≈$10 million) five-year working capital facility from Mexican state-backed lender FIFOMI for its Panuco silver-gold project in Sinaloa, priced at the TIIE rate plus a 4.6681% margin. Panuco hosts over 102 million oz silver and 829,000 oz gold in reserves, with a feasibility study projecting 17.4 million oz silver-equivalent output per year over 9.4 years, an after-tax NPV5 of $1.8 billion, 111% IRR and a seven-month payback. Shares rose 2.6%, valuing Vizsla at C$1.78 billion.

    Related Industries & Products

    Mining

    Geotechnical software solutions for mining operations including CMRR analysis, hydrogeological testing, and data management.

    Construction

    Quality control software for construction companies with material testing, batch tracking, and compliance management.

    CMRR-io

    Streamline coal mine roof stability assessments with our cloud-based CMRR software featuring automated calculations, multi-scenario analysis, and collaborative workflows.

    HYDROGEO-io

    Comprehensive hydrogeological testing platform for managing, analysing, and reporting on packer tests, lugeon values, and hydraulic conductivity assessments.

    GEODB-io

    Centralised geotechnical data management solution for storing, accessing, and analysing all your site investigation and material testing data.

    AllGeotechnicalInfrastructureHazardsEnvironmental