Mineral Resources (MinRes) has announced the transition of its Bald Hill lithium mine to care and maintenance, citing a strategic review and a sustained period of low spodumene concentrate prices.
The mine, located 50km south-east of Kambalda in the Goldfields region, will begin winding down operations on 13 November 2024.
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Mining and mobile maintenance operations at Bald Hill will cease from mid-November, with the spodumene concentrate plant and accommodation village expected to follow by early December 2024.
This decision aims to conserve cash and protect the value of the mine’s spodumene orebody until the global lithium market recovers.
Nearly 300 employees will be affected by the move.
MinRes stated that it will prioritise the redeployment of Bald Hill employees to its other Western Australian operations.
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By GlobalDataIn cases where redeployment is not possible, the company will proceed with a redundancy process. The final shipment of Bald Hill spodumene concentrate is projected for December 2024.
The forecast for shipped SC6 volumes for the financial year 2025 has been revised down to approximately 60,000 dry metric tonnes, from the previously guided range of 120,000–145,000 dry metric tonnes SC6 equivalent.
A reduced team of around ten employees will remain on-site to oversee the production ramp-down and subsequent care and maintenance activities.
MinRes has indicated that when market conditions become favourable, the mine could be brought back to full operation within four to six weeks.
During the care and maintenance phase, MinRes plans to continue refining mine plans, scale and operating structure to ensure efficiency upon any potential future restart of the Bald Hill lithium mine.
MinRes managing director Chris Ellison said: “Bald Hill is a significant value opportunity for MinRes once conditions in the lithium market improve. Placing Bald Hill on care and maintenance is a prudent decision but one not made lightly.
“The decision aligns with the work we have done across the company in recent months to reduce costs.
“The significant upgrade to the Mineral Resources statement is evidence that Bald Hill is a high-quality asset with a long-term future. We will continue to monitor lithium prices and site operating costs with a view to recommencing operations once conditions improve.”
In June this year, MinRes announced the closure of its Yilgarn iron ore hub in Western Australia’s Goldfields region by 31 December 2024 due to financial unviability.
