Photo by: Bloomberg
PERTH (miningweekly.com) – The board of lithium miner Pilbara Minerals has approved the Stage 2 expansion of the Pilgangoora project, in Western Australia.
The Stage 2 operation will see an additional three-million-tonne-a-year processing circuit added to the existing Stage 1 operation, taking the project capacity to five-million tonnes a year.
The Stage 2 expansion will increase production from 314 000 t/y, to between 800 000 t/y and 850 000 t/y of high-quality spodumene concentrate over a mine life of 17 years.
“Pilbara Minerals has established a track record of getting things done, developing at scale, successfully executing a rapid build and ramp-up of the Stage 1 project, and confirming our ability to deliver high-quality products to our customers,” said Pilbara MD Ken Brinsden.
“These achievements and more have allowed us to attract and grow production with premium customers in the global lithium-ion supply chain.”
Brinsden said that against a backdrop of significant demand growth for lithium raw materials over the coming decade, the quality and scale of the resource at Pilgangoora demanded further expansion.
“This will ensure it becomes a mainstay in the next generation of large-scale, low-cost mines to support the significant growth in downstream lithium hydroxide capacity. In much the same way as we got on with the job in Stage 1, we will work to the same tune in Stage 2.”
A previously completed definitive feasibility study estimated that the expansion would require a capital investment of A$231-million, with Pilbara saying on Monday that the company was continuing to make progress with a number of funding alternatives for the expansion, including debt and offtake prepayment funding from customers, as well as alternate finance structures.
The company is hoping to finalise the financing in the current quarter, with the commissioning of the Stage 2 project targeted for the December quarter of 2019.