PLS plans to invest $1.9 billion in Pilgangoora mine expansion — ABC News Australia

Australia’s PLS Group has announced plans to invest $1.9 billion in expanding the Pilgangoora lithium mine in the Pilbara region of northwestern Australia. The company intends to increase production of spodumene concentrate to about 2 million tonnes per year, ABC News Australia reports.

New processing complex

The project provides for the construction of the new Jimmagunya processing plant. The name was chosen by elders of the Nyamal people; it means “the place of springs.” The Pilgangoora mine is located about 140 km southeast of Port Hedland.

PLS Managing Director and CEO Dale Henderson said the company is investing in infrastructure for the long-term development of the deposit. According to him, the changes are expected to reduce operating costs, increase productivity and provide infrastructure capacity for the expansion of the P2000 project.

Production by 2029

PLS forecasts that after the expanded capacity is fully commissioned in 2029, Pilgangoora will produce 2 million tonnes of spodumene concentrate annually. If this forecast proves accurate, the mine could compete with Greenbushes, operated by Talison Lithium, for the status of Australia’s largest hard-rock lithium mine.

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Separately, PLS announced $600 million in infrastructure investments over three years. These include upgrades to access roads co-funded by the state government, construction of a permanent 1,200-bed workers’ village, and a mine servicing facility. The company plans to finance both investment streams from available cash and cash flows from current production.

Prices fall despite high demand

Mining industry analyst Peter Strachan noted that demand for lithium remains high due to global demand for electric vehicles, but prices for spodumene concentrate are declining because of increased supply. According to the report, the price of spodumene has nearly halved from its May peak of US$3,000 per tonne to US$1,505, while the price of lithium carbonate was about US$15,500 per tonne.

The Western Australian government said the expansion will create about 1,000 jobs during construction and another 500 operational positions. In 2025, the state’s lithium industry sold nearly 4 million tonnes of spodumene concentrate, the highest volume on record.