Liontown Awards Haulage Contract for Kathleen Valley Lithium Project to Qube Holdings
Liontown Resources Limited
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Liontown Awards Haulage Contract for Kathleen Valley Lithium Project to Qube Holdings

Liontown Resources Limited (ASX: LTR) has announced that it has awarded the spodumene and DSO haulage services contract for the Kathleen Valley Lithium Project to Qube Holdings Limited (Qube), an integrated logistics solutions provider. The five-year contract involves loading spodumene concentrate at Kathleen Valley, haulage of the concentrate to the Port of Geraldton, storage and stockpile management at the port, and outload to port infrastructure for shipment to Liontown customers. Storage will be in a dedicated world-class facility within the Port of Geraldton.

Qube, which secured the contract following an extensive tender process, will utilise ultra-Quad road-trains to truck all concentrate from Kathleen Valley to the dedicated storage facility at the Port of Geraldton for the duration of the contract. The company will use its 24/7 fleet monitoring centre in Perth to manage safety and environmental outcomes.

The contract is due to commence in mid-2024 in line with process plant ramp-up. Provision has been made for the services to be provided earlier for direct shipping ore (DSO) as Liontown nears completion of offtake and processing options.

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The concentrate haulage services contract, which is conditional upon Qube finalising arrangements to secure the storage facility at the Port of Geraldton, is valued at approximately A$175 million over the five-year contract term and was awarded following a competitive tender process.

Qube has committed to the latest technology in driver and trucking safety as well as pursuing measurable carbon reduction initiatives as part of Liontown's ESG commitments, working with the Kathleen Valley Tjiwarl Traditional Owners and exploring numerous revenue-generating opportunities with Tjiwarl businesses in the coming months. The contract will generate around 45 new positions and the Quad-trailers will be sourced in Western Australia.

Liontown's Managing Director and CEO, Tony Ottaviano, expressed delight at the announcement, saying, “We look forward to working with Qube on the haulage and storage of our spodumene concentrate and DSO material from Kathleen Valley as well as benefiting from their expertise in the industry, especially with their extensive experience managing spodumene for others. This contract coupled with the Underground Mining Services (due this quarter) represents one of the last few outstanding contracts to be awarded as we progress Kathleen Valley towards first production mid-2024. "

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