Photo by: Bloomberg
PERTH (miningweekly.com) – An expanded production scenario for the planned Pilgangoora lithium project, in Western Australia, has improved project economics, owner Altura Mining revealed on Monday.
A feasibility study revealed that the Pilgangoora project could produce about 215 000 t/y of spodumene concentrate over an initial mine life of 12 years.
This was up from the prefeasibility study (PFS) production of 150 000 t/y of spodumene concentrate, with a mine life of 19 years.
With higher output expected at Pilgangoora, the feasibility study had increased the project’s expected net present value from A$227-million reported in the PFS to A$382-million, while the internal rate of return increased from 42.5% to 59.9%.
The projected life-of-mine (LoM) revenue also increased from A$1.3-billion projected in the PFS to A$1.56-million, while LoM cash generation increased from A$609-million to A$773.8-million.
In the meantime, the project’s expected capital costs had increased from A$97.6-million to A$129.3-million.
Altura said that the company was aiming to have Pilgangoora in production by 2017, with the development of a single openpit mine and processing plant facilities. Processed ore would be trucked to Port Hedland, where it would be exported.
Altura stated that there was potential for further economic improvements at the Pilgangoora project by increasing the mine life with the conversion of inferred mineral resource into the indicated category, as well as by increasing the resource base.
Furthermore, the company was investigating the reduction of capital requirements through the acquisition of existing infrastructure or infrastructure sharing arrangements with adjacent project developers, as well as concluding binding offtake agreements with partners that could potentially offer higher spodumene prices.