Name of the Project
Whabouchi lithium mine and Shawinigan electrochemical plant.

Location
The mine will be located in the Eeyou Istchee James Bay territory, in Quebec, and the concentrator at the hydrometallurgical (hydromet) plant in Shawinigan, Quebec, Canada.

Project Owner/s
Nemaska Lithium.

Project Description
The project has openpit and underground proven and probable reserves of 37-million tonnes at 1.40% lithium oxide.

The 2018 feasibility study outlines a combined openpit and underground mine with a 33-year mine life, concentration facilities, tailings and water management at the mine, as well as an electrochemical plant, in Shawinigan.

Over the life-of-mine, the mine is expected to produce seven-million tonnes of spodumene concentrate, which will be converted into 770 000 t of battery-grade lithium hydroxide and 361 000 t of battery-grade lithium carbonate.

During the first 23.6 years, production will be derived from an openpit developed to a maximum depth of 224 m and with an average strip ratio of 2.95:1. The openpit will be mined using a standard fleet of off-road mining trucks and hydraulic excavators at a rate of 2 830 t/d of ore.

During the past 9.4 years, ore production will be derived from an underground operation at 3 665 t/d and accessed through a ramp in the openpit. The underground development will reach an average depth of 55 m below the pit bottom. The selected underground mining method is longhole stoping, with the crown pillar below the pit recovered at the end of the mine life.

The feasibility study includes the addition of an ore-sorting circuit at the mine. Additional equipment and buffer zones have also been added throughout the process at both sites to increase operability, while enhancing process reliability and allowing for ongoing maintenance without disrupting operations have ensured optimal performance.

The electrochemical processing plant’s capacity has been increased by 20%, from 27 000 t/y lithium carbonate equivalent (LCE) to 33 000 t/y LCE.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The feasibility study shows a base case pretax net present value, at an 8% discount rate, of C$3.3-billion and an internal rate of return of 34.4%, with an after-tax payback of 2.9 years.

Capital Expenditure
Initial capital costs were estimated at C$874.4-million; however, the company announced in February this year that it will need an additional C$375-million to complete the project.

Planned Start/End Date
Construction mobilisation started in the third quarter of 2016.

Concentrator commissioning is expected to start in the second quarter of 2019 and commercial production in the fourth quarter.

The electrochemical plant is expected to start commissioning in the first quarter of 2020, with commercial production expected to start in the fourth quarter.

Latest Developments
Nemaska Lithium has potentially raised new capital to build the Whabouchi lithium mine and Shawinigan electrochemical plant, which faces cost overruns of about C$375-million.

Global investor Pallinghurst Group is contemplating a C$200-million private placement, at C$0.25 a share, and a standby purchase agreement to fully guarantee the successful completion of a rights offering of up to C$400-million at the same price.

The ultimate size of the offering will be determined once a due diligence review by Pallinghurst is completed. Nemaska has said that it is Pallinghurst’s intention that the project will be fully financed. In April, it estimated that C$375-million would be required to complete the project.

Nemaska president and CEO Guy Bourassa has commented that Pallinghurst is a “prime partner” for the project, as it is a “renowned financier with a unique vision and a deep knowledge of the lithium and battery material sector”.

Pallinghurst is positioning itself as a key investor in the battery materials and energy storage market. The firm has earmarked $1-billion for investments in battery and fuel cell-related materials.

Pallinghurst cofounder and managing partner Arne Frandsen has said that the Nemaska investment is in line with Pallinghurst’s desire to focus exclusively on the supply of critical battery and fuel cell-related materials.

Key Contracts and Suppliers
Nemaska was forced to set a new pace for construction at the mine in February this year after a project cost blow-out left it short of cash.

On Budget and on Time?
Engineering at both sites is on schedule, in line with construction timeline targets.

Contact Details for Project Information
Nemaska Lithium, tel +1 418 704 6038 or email info@nemaskalithium.com.