Construction jobs go at Albemarle’s Kemerton lithium processing plant following delay of train four project

The axe has been swung on about 150 construction jobs at Albemarle’s Kemerton lithium processing plant amid cost-cutting measures. Workers for contractor UGL were told the news on Friday, which is linked to Albemarle’s decision in January to cut $95 million in costs following a downturn in lithium prices. An Albemarle spokesperson said the building of train four at the site had been delayed until lithium prices improve. “A revised contracting strategy is being implemented to reflect these previously announced decisions and to ensure we realise the capital savings reported to the market,” they said. The spokesperson said a single construction contractor will undertake work on train three, which will go ahead despite the downturn. “We have work to do with our contractor to finalise the scope and the workforce required, but it is likely the final number will be fewer than originally anticipated,” they said. “The construction workforce will be critical to the successful outcome of the project through the completion of train three which will extend beyond 2026.” It is understood the cut to the number of construction workers at the site is separate to the up to 30 jobs expected to be lost by those directly employed by Albemarle following January’s announcement. UGL was awarded a $330m contract for the Kemerton expansion in August, after Albemarle’s original decision to green the construction of trains three and four in May. At the time, capital projects vice-president Josh Rowan said the UGL contract was one of the largest the company had awarded in Australia. Prices for lithium carbonate have dropped significantly over the past year and now sit 60 per cent below prices received last March. The Kemerton plant has come under increased scrutiny recently, with claims some workers were exposed to chemicals during incidents in February. Albemarle’s spokesperson said it continued to focus on delivering safe production from trains one and two, which will not be impacted by the job losses. UGL’s owners CIMIC Group and the Construction, Forestry and Maritime Employees Union were contacted for comment.