Liontown Resources Limited has awarded Qube Holdings Limited the spodumene concentrate and DSO haulage services contract for the Kathleen Valley Lithium Project.
Following an extensive tender process, Qube was awarded the five-year contract, which includes loading spodumene concentrate at the Kathleen Valley Lithium Project, hauling the concentrate to the Port of Geraldton, managing storage and stockpiles at the port, and outloading to port infrastructure for shipment to Liontown customers. Storage will take place in a dedicated world-class facility at the Geraldton Port.
For the length of the contract, Qube will use ultra-quad road-trains to transport all concentrate from the Kathleen Valley Lithium Project to the specialised storage facility at the Port of Geraldton. Qube will oversee safety and environmental results through its 24/7 fleet monitoring facility in Perth.
The contract is scheduled to begin in mid-2024, in time for process plant ramp-up. As Liontown nears completion of offtake and processing options, provisions have been prepared for the services to be offered sooner for direct shipping ore. In addition to earning early revenue for Liontown, selling and exporting DSO will allow the Company to test the haulage logistics system with lesser-grade material before initial production from Kathleen Valley begins in mid-2024.
The concentrate haulage services contract is valued at roughly A$175 million over the five-year contract duration and was granted following a competitive tender process.
As part of Liontown’s broader ESG commitments, Qube has committed to pursuing measurable carbon reduction initiatives, utilising the most recent driver and trucking safety technology, working with the Kathleen Valley Tjiwarl Traditional Owners, and exploring a variety of revenue-generating opportunities with Tjiwarl businesses in the upcoming months. The contract will result in the creation of about 45 new jobs, and Western Australia will provide the quad-trailers.
As part of Liontown’s broader ESG commitments, Qube has committed to pursuing measurable carbon reduction initiatives, utilising the most recent driver and trucking safety technology, working with the Kathleen Valley Tjiwarl Traditional Owners, and exploring a variety of revenue-generating opportunities with Tjiwarl businesses in the upcoming months. The contract will result in the creation of about 45 new jobs, and the quad-trailers will be sourced in Western Australia.
“We look forward to working with Qube on the haulage and storage of our spodumene concentrate and DSO material from Kathleen Valley as well as benefiting from their expertise in the industry, especially with their extensive experience managing spodumene for others,” Liontown Managing Director and CEO Tony Ottaviano said.
“This contract coupled with the Underground Mining Services (due this quarter) represents one of the last few outstanding contracts to be awarded as we progress Kathleen Valley towards first production mid-2024,” he added.
