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 Québec, and the concentrator at the hydrometallurgical (hydromet) plant in Shawinigan, Quebec, Canada.
Client
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 and 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 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 last 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.
Value
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.
Duration
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 announced that it will need more money to complete the Whabouchi mine and Shawinigan electrochemical plant.
Eight months into construction, the company performed a cost-to-completion assessment, which takes into account finalised agreements and/or bids, rather than estimates, and determined that it would need a further C$375-million.
Nemaska has already spent C$138.4-million on the Whabouchi mine and C$67.3-million on the Shawinigan plant, covering mainly engineering, site and civil works. Prior to construction Nemaska had set a budget of C$874.4-million for the project.
“We are evaluating several options that would enable existing and new shareholders, and project partners, to join the table. Our objective remains to close the required financing on time to stay on target to complete mine construction in October 2019 to make the first shipment of spodumene concentrate in December 2019, followed by the start-up of the Shawinigan facility the year after,” CEO Guy Bourassa has said in a statement.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Engineering at both sites is on schedule, per the construction timeline targets.
Contact Details for Project Information
Nemaska Lithium, tel +1 418 704 6038 or email info@nemaskalithium.com.