Liontown secures WA government backing amid lithium price pressure
Emerging lithium producer Liontown Resources has secured financial backing from the Western Australian government through its Lithium Industry Support Programme, as the state moves to shore up its critical minerals sector amid sustained price weakness.
Liontown has executed a deed of loan with the state for an interest-free loan of A$15-million, and has also been confirmed as eligible for a temporary waiver of port charges and certain mining tenement fee rebates.
The support measures aim to ease financial pressure during ramp-up operations at the Kathleen Valley lithium project and will remain in place until spodumene prices recover to above $1 100/t for two consecutive quarters, or until June 30, 2026 – whichever comes first.
“The WA government’s support in the current low-price environment demonstrates its understanding and unwavering commitment to the State’s critical lithium industry,” said MD and CEO Tony Ottaviano.
The loan is unsecured and will not affect the terms of Liontown’s existing debt facilities. Repayments will begin in quarterly installments once the interest-free period ends, and the company expects to receive the funds this quarter.
Liontown recently produced first concentrate at Kathleen Valley and continues ramping up operations at the flagship project, which is expected to become a significant supplier of lithium spodumene concentrate.
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