PERTH (miningweekly.com) – The Northern Australia Infrastructure Facility (NAIF) is to make a A$19.5-million loan to help boost exports of lithium from the Pilbara region of Western Australia.

Resources and Northern Australia Minister Matt Canavan said over the weekend that the loan to a subsidiary of ASX-listed Pilbara Minerals would upgrade a 70-km public road from the Pilgangoora lithium mine.

“This will get lithium from the mine to port more efficiently, and also improve travel times and safety for a wide range of road-users in the region, including other mining companies, pastoralists, Indigenous communities, local residents and tourists,” Canavan said.

“Upgrading roads like this is a vital part of our commitment to the further development of Northern Australia.”

The Stage 1 project at Pilgangoora will be a two-million-tonne-a-year operation, producing an average of 314 000 t/y of 6% spodumene concentrate and 321 000 lb/y of tantalite, over 36 years. The Stage 2 expansion will increase production to five-million tonnes a year.

“Northern Australia is a vital source of export income and the road upgrade will allow improved mine access and greater payloads to be transported to port,” Canavan said.

“Travel time and safety will be improved, as the road bypasses three railway crossings and diverts heavy vehicles from a large part of the Great Northern Highway.

“This is the sort of a job-creating infrastructure project that NAIF has been designed to support.”

The Minister said the burgeoning demand for batteries is creating opportunities to expand lithium production.

“Australia has already tripled lithium production in the past eight years and is now the world's largest producer.  

“I want to encourage more investment in lithium, not just in the mining and early processing but also through the value chain as well.”

Canavan said that the government would continue to invest in Northern Australia though a range of initiatives, including NAIF and the Cooperative Research Centre for Developing Northern Australia, with Canavan expected to announce further NAIF loans in coming months.

“I am aware that NAIF currently has 15 projects in the ‘due diligence’ phase across Western Australia, the Northern Territory and Queensland.”