Kwinana Refinery The Kwinana Refinery is one of the first fully automated battery grade lithium hydroxide facilities globally, and the first lithium hydroxide plant to commence production in Australia. The Refinery is approximately 35km south of Perth, Western Australia, and only 200km north of Greenbushes, adjacent to major supply chain logistics. The Refinery consists of two individual production trains which targets the production of up to 48,000t of lithium hydroxide in aggregate once fully ramped up (up to 24,000t per Train). Train 1 is currently in ramp up phase, with commercial production expected within the next 12 months. Construction of Train 2 is partially complete. Construction is expected to recommence in FY23 once internal approvals are finalised in 1H23. Subject to these internal approvals, Train 2 commissioning is expected to commence in early 2025. FY22 was a milestone year for the Kwinana Refinery, with the completion of commissioning of Train 1 leading to the production of first lithium hydroxide in August 2021 and first battery grade product successfully achieved in May 2022. Shortly thereafter, samples of product were delivered to offtake customers to commence the process of product testing and qualification. TLEA expects this process to take approximately four to eight months, after which commercial volumes will be delivered to end customers. Kwinana Refinery FY23 Outlook During FY23, the focus at the Refinery will be on continuing to ramp up production safely and efficiently from Train 1, while also recommencing construction of Train 2. In addition, the team at the Refinery is seeking to enhance its sustainability performance, through the establishment of end-markets for by-products produced by the spodumene conversion process. By-products, which include aluminosilicate, gyplime and sodium sulphate, all have industrial applications which provides an opportunity for the Refinery to transition to a no-waste operation. Greenbushes (100%) FY22 Total revenue1 $M 1,880.3 EBITDA1 $M 1,348.5 Ore mined ‘000 tonnes 3,793.3 Lithium grade % 2.41 Spodumene concentrate production ‘000 tonnes 1,134.6 Lithium cost of goods sold, excluding royalties $/t concentrate sold 238 Lithium cost of goods sold2 $/t concentrate sold 457 1. Represents Greenbushes revenue and EBITDA on a 100% basis 2. Includes all costs of goods sold including royalties. Greenbushes recorded FY22 sales revenue of $1,880.3 million on a 100% basis, which translated to Underlying EBITDA of $1,348.5 million for the year. Above is a summary of the key physical and financial information relating to the Greenbushes Operation on a 100% basis. Greenbushes FY23 Outlook The Talison team have several key workstreams underway in FY23, primarily focused on the expansion of mining and processing operations to deliver higher volumes of spodumene concentrate. The construction of CGP3 was approved in March 2022 following the conclusion of a front-end-engineering and design process and updated capital cost estimate. CGP3 construction is expected to cost $500-$550 million (100% basis), with plant design based on the CGP2 design and having a nominal throughput rate of 2.4Mtpa. CGP3 is expected to contribute an additional 520ktpa of spodumene concentrate to the Greenbushes production profile once construction is completed in early 2025. To support the growth in mining and processing operations, Talison is also managing a significant expansion to the supporting infrastructure at Greenbushes. In FY23, several key workstreams will commence or continue, including expansion of the mine services area, increasing tailings and water storage capacity and upgrading site services including power supply, warehouses, workshops and offices. With the significant growth plans for Greenbushes, the Talison team are working to minimise the impact to the environment and local communities. Priority activities include a focus on decarbonisation, achieved through accessing renewable energy sources via the grid, the sustainable management of onsite tailings and water, and the minimisation of community impacts from noise and dust. Surveyor at Greenbushes Operation 30 —IGO ANNUAL REPORT 2022
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