(Adds context, company comment)
Feb 21 (Reuters) - Lithium miner Allkem Ltd on
Tuesday cut its full-year guidance for spodumene concentrate
production from the Mt Cattlin operations in Western Australia
for a second time, after unfavourable ore characteristics
impacted first-half output.
The Buenos Aires, Argentina-headquartered company said
full-year production from Mt Cattlin would now peak at about
114,000 tonnes to 124,000 tonnes on account of fine-grained
mineralisation and lower-grade ore.
The revised forecast is below its prior estimate of 140,000
tonnes to 150,000 tonnes and fiscal 2022 production of 193,563
tonnes. In August last year, Allkem had cited labour and equipment
shortages to lower its Mt Cattlin production aspirations from an
initial estimate of 160,000 tonnes to 170,000 tonnes. Nevertheless, the miner said Mt Cattlin spodumene production
would touch about 80,000 tonnes-90,000 tonnes in the second half
of the year, compared with 34,000 tonnes in the first half.
"We are seeing Mt Cattlin returning to normal levels of
production after the technical team effectively managed the
unfavourable mineralogy and ore characteristics experienced
throughout the December half," said Chief Executive Martín Pérez
de Solay.
Spodumene is the mineral from which lithium is extracted.
Its popularity and price has soared as lithium is a key
component of electric vehicle batteries.
(Reporting by Jaskiran Singh in Bengaluru; Editing by Sandra
Maler and Subhranshu Sahu)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.