Key Lithium Project in Australia Moves Forward

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Australia is expanding its lithium mining portfolio as Hancock Prospecting, owned by Australia's richest person, Gina Rinehart, aims to begin constructing a US$1 billion lithium mine in western Australia in 2028.

A New Mine

Hancock Prospecting, owned by Australia's richest person, Gina Rinehart, aims to begin constructing a US$1 billion lithium mine in Andover, Western Australia in 2028. 

The planned mine, formerly owned by Azure Minerals, will be built near the town of Roebourne located in Australia's mining heartland, the Pilbara region, in a joint venture with Chilean lithium giant Sociedad Química y Minera (SQM). A development plan was submitted to federal government regulators in recent weeks, according to Australian Financial Review (AFW). It comes as prices for lithium continue a sustained recovery. Hancock and SQM acquired Azure Minerals for US$1.1 billion in late 2023. Continued drilling at the site has confirmed a major lithium mineralised system is present within the target area 3 (TA3), one that could make it one of the country's top producing mines. According to Industrial Info Resources data, there are 60 active lithium mining-related projects in Australia with a combined investment value of almost US$6 billion. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports. 

Australia Wants More Control

The news comes as Australia's government has ordered the largest China-linked shareholders in the rare earths firm Northern Minerals Ltd. to sell their shares on national security grounds. Five are registered in China or Hong Kong, according to the statement, and the six hold a 27% combined stake in the company, which is preparing to develop the Browns Range heavy rare earth minerals project in the Pilbara region. 

Heavy rare earth minerals are essential in military applications and advanced electronics, and China already dominates global processing of rare earths. Australian Treasurer Jim Chalmers said: "We operate a robust and non-discriminatory foreign investment framework, and will take further action if required to protect our national interest in relation to this matter." It is not the first time that the government has ordered Chinese-backed shareholders to exit the Browns Range project. Industrial Info Resources is tracking four Browns Range projects worth more than US$420 million. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports. 

Andover Mine

Exploration has confirmed the presence of spodumene-bearing pegmatites across a 9 kilometers (km) by 5km corridor in Andover. Azure has told regulators that the Andover lithium mine would be able to produce 6 million tonnes of ore each year, and refine it into a maximum of 1.1 million tonnes of lithium concentrate yearly. This would put it second after Greenbushes, AFW noted, and on a similar scale to the PLS Pilgangoora mine, which produced 5.2 million tonnes of ore in 2025 and sold 754,000 tonnes of concentrate. DRA Global announced recently that it has been tasked by Azure to produce a Definitive Feasibility Study for the Andover project. Josh Kember, DRA Senior Vice President -- APAC, commented: "Andover is a significant addition to the next generation of lithium projects in the Pilbara. This award reflects the depth of our lithium capability in Australia and the strength of the team we have built locally." Australia has significant lithium resources, exporting half of the world's total for processing - almost all of which goes to China.  

Bald Hill Mine Restarts

At the same time, Mineral Resources (MinRes) has announced the restart of operations at its 100%-owned Bald Hill lithium mine, in western Australia. Located 50 kilometers (km) south-east of Kambalda in the Goldfields region, Bald Hill has a production capacity of approximately 165,000 dry metric tonnes (dmt) per annum of 5.1% spodumene concentrate, equivalent to 140,000dmt of spodumene concentrate 6% (SC6), a high purity lithium ore. 

The mine was placed on care and maintenance in November 2024 due to low lithium prices. Managing Director Chris Ellison said: "With strong and sustained demand for spodumene concentrate driving a significant recovery in prices, the time is right to restart operations at Bald Hill. The combination of a high-quality, production-ready asset and the in-house capability of our Mining Services business means MinRes is well placed to rapidly capitalise on the resurgent lithium market. Once production resumes at Bald Hill, MinRes will be the only company globally operating three hard rock lithium mines, each with their own spodumene concentrate facilities."

Key Takeaways

• Billionaire Gina Rinehart's Hancock Prospecting aims to begin constructing a US$1 billion lithium mine in Andover, Western Australia in 2028. 
• Industrial Info Resources is tracking 60 active lithium mining-related projects in Australia with a combined investment value of almost US$6 billion. 
• Australia has ordered six China-linked shareholders to sell their stakes in the Browns Range rare earth minerals project on national security grounds. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).