National Reconstruction Fund makes $50 million equity investment in Liontown Resources 

The National Reconstruction Fund has announced a $50 million equity investment in Liontown Resources, which is raising $266 million through an institutional placement.

According to a statement from industry minister Tim Ayres on Thursday, the investment by the NRF will support “the ramp-up and underground transition” of Liontown’s Kathleen Valley Lithium Operation.

“I am delighted by today’s announcement, and to see the National Reconstruction Fund backing the critical minerals supply chain,” said Ayres. 

“With Australia’s critical and abundant natural endowments, like lithium, and skilled workers, Australia is well positioned to strengthen supply chains and become an indispensable part of the low carbon global economy. 

Kathleen Valley began production of spodumene concentrate in July last year.

“Our investment in Liontown will help to attract private capital and develop Australia’s resources sector. It is aligned with the government’s strategy of transforming Australia into a global leader in the critical minerals supply chain,” said National Reconstruction Fund Corporation CEO David Gall in a statement.

The Australian Financial Review reports that Gina Rinehart’s Hancock Prospecting, the largest shareholder in Liontown with a 18 per cent stake, is not participating in the raise.

The NRFC is charged with making investment decisions in companies from seven priority areas identified by the federal government, though acting independently of it. It is modelled on the Clean Energy Finance Corporation.

Picture: credit Liontown

Further reading

Liontown goes underground to weather lithium glut

Liontown Resources plans lithium battery chemicals refinery

Liontown Resources progress lithium concentrate production

$230 million finance to speed lithium battery supply project