State backing and $1.9b expansion sets Pilbara miner on path to global lithium powerhouse

Pilbara miner PLS will fork out $1.9 billion after green-lighting the expansion of its Pilgangoora mine in the state’s north-west in a move that could see the operation become the world’s largest hard-rock lithium mine.

The announcement is set to see the company overtake the world-famous Greenbushes mine in WA’s South West as Australia’s largest hard-rock lithium operation in terms of reserve volume, with a predicted output of two million tonnes per year of spodumene concentrate when it is fully operational in 2029.

According to PLS, the P2000 project expansion adds 23 per cent to the overall reserve tonnes at Pilgangoora, a larger current reserve, although at a lower grade, than at Greenbushes.

The tonnage increase lifts the company’s ore reserve to 249.2 million tonnes at 1.24 per cent lithium hydroxide representing a 31 per cent increase in contained lithium.

PLS managing director and chief executive Dale Henderson said P2000 would transform the scale and competitive position of the company.

“The substantial increase in Pilgangoora’s ore reserve reinforces the scale and quality of this world-class orebody and provides a strong foundation for the P2000 expansion announced today,” he said.

“The maiden underground ore reserve is also a significant step in demonstrating the longer-term potential of Pilgangoora.

“At 46.5 million tonnes at 1.50 per cent Li2O, it establishes a substantial higher-grade inventory beneath the existing open pits and provides further opportunity to create value over time.”

Henderson said recent investments made in key infrastructure at the operation are expected to reduce operating costs, improve productivity and strengthen the existing operation, while also providing the infrastructure capacity required to support the increased scale of P2000.

The state government is supporting the expansion by investing $11 million to upgrade Wodgina Access Road, a freight route connecting Pilgangoora with Great Northern Highway and Port Hedland.

Works will include a new intersection with Great Northern Highway and about one kilometre of road realignment, improving safety for all road users, including heavy vehicles.

“We welcome the Western Australian government’s initial funding commitment towards the Wodgina Road upgrades,” Henderson said.

“We have built a strong operating position at Pilgangoora and remain focused on continuing to improve it. These investments are another step in strengthening our competitive position and supporting long-term value creation through the cycle.”

The announcement has been welcomed by the state government and comes at a time when Premier Roger Cook has been facing increased heat over several key issues including child protection in the region.

Cook said the Pilgangoora expansion would support about 1000 construction jobs, create 500 ongoing roles, and deliver new opportunities for local contractors and businesses across the Pilbara.

“This is exactly the kind of investment that keeps Western Australians in work today and creates the jobs of tomorrow,” he said.

“Every new mine, every expansion, and every tonne of lithium processed in WA means more jobs for Western Australians.

Mines, Petroleum and Exploration Minister Daniel Pastorelli said the investment decision will strengthen WA’s position as a global leader in lithium production.

“As demand for battery minerals grows, projects like P2000 will ensure WA remains well placed to supply global markets,” he said.

“Pilgangoora showcases the expertise, infrastructure, and investment environment that continue to attract major resource projects to our state.

“Importantly, the project will expand employment and contracting opportunities for Traditional Owners and local communities across the Pilbara.”