The Kathleen Valley project will also produce tantalum pentoxide. Credit: Mikes1978 from Pixabay.

Lycopodium subsidiary Lycopodium Minerals has received a contract from Australian firm Liontown Resources to develop the Kathleen Valley lithium project in Western Australia.

One of the world’s largest and highest-grade hard rock lithium deposits, the mine is expected to have an initial production capacity of 2.5 million tonnes per annum (Mtpa).

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It is expected to supply around 500,000tpa of 6% lithium oxide concentrate.

Under the A$35m ($24m) contract, Lycopodium will be responsible for engineering, procurement, construction management (EPCM), pre-operational testing and commissioning services for the processing facilities and related non-process infrastructure at the Kathleen Valley project.

Lycopodium was earlier selected to carry out a pre-feasibility study (PFS), followed by value engineering assessments (VEAs), at the project site.

The firm also conducted a subsequent definitive feasibility study (DFS) and provided front-end engineering design (FEED) services.

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Lycopodium managing director Peter De Leo said: “Kathleen Valley is a lithium project of global significance that will supply vital battery minerals to the burgeoning electric vehicle and energy storage industries.

“As we move towards a renewable energy future, the award of this project further strengthens our position as a premier partner in the delivery of lithium projects, and we thank Liontown for the opportunity to partner with them on this important project.”

Located in an established mining region 60km north of Leinster, and 680km north-east of Perth, the Kathleen Valley mine is expected to start production in Q2 2024.

Considered a Tier-1 battery metals asset, the project will also produce tantalum pentoxide, an essential material used in optics and electronics manufacturing applications.