Pilbara Minerals Ltd. cut 36 jobs and suspended mining contractor MACA Ltd. at its Pilgangoora lithium mine in Western Australia, The Australian reported Sept. 12, citing a company spokesperson.
Mining activities at Pilgangoora were suspended for the short term due to unfavorable market conditions, the spokesperson said. MACA has not fully demobilized from the site, and certain workers remain on standby to resume operations if the market improves.
The company shut down its processing plant at the mine in August due to a market slowdown and for maintenance and optimization, aiming to increase lithium recoveries to design levels of between 72% and 78%, from about 55%.
Pilbara Minerals said it will use existing stockpiles to feed the plant when it resumes operations in mid-October.
"The company has sufficient ore stocks available to moderate processing activities in the short term and sufficient final product stocks to maintain product sales consistent with its previously published guidance," the spokesperson said. "During this period of moderated production, the company will only mine and process as required to meet customer demands."
While it is not clear when mining will fully resume at Pilgangoora, Pilbara Minerals remains confident in the long-term growth of the lithium sector in light of Chinese battery manufacturer Contemporary Amperex Technology Co. Ltd.'s recent acquisition of an 8.5% stake in the company for A$55 million as part of a A$91.5 million financing.
