PERTH (miningweekly.com) – A scoping study into a fully integrated underground mining and downstream lithium hydroxide conversion plant at the San Jose project, in Spain, has highlighted positive economics.
ASX-listed Infinity Lithium on Thursday reported that the scoping study estimated that the project would require a capital spend of some $532.2-million and would have a steady-state production of 19 500 t/y of lithium hydroxide over a mine life of 26 years.
The project is estimated to have a pre-tax net present value of $811.7-million, an internal rate of return of 25.7%, and would generate life-of-mine gross revenues of some $7.9-billion.
Infinity Lithium earlier this week received a positive ruling by the Contentious-Administrative Court in Caceres in favour of the San Jose lithium project joint venture, upholding an appeal relating to the rehabilitation and restoration plan of the project.
The City Council in September 2019 proposed a modified restoration plan and placed a halt on field work at San Jose, claiming that Infinity Lithium had acted outside the restoration plan.
“We are pleased to provide an alternative and viable option to bring this strategically essential project to fruition which provides multiple benefits to the locality of Caceres, while meeting the broader critical requirements for battery grade lithium chemicals in the European Union,” said Infinity MD Ryan Parkin.
“The integrated underground mine and lithium hydroxide scoping study builds on the extensive test work that has recently resulted in the production of battery grade lithium hydroxide and carbonate. The company looks forward to working with all stakeholders to deliver an exceptional outcome as we progress San Jose and provide an alternative resolution for local and regional government.”
Feasibility study and front-end engineering and design is slated for all of next year, with a final investment decision due before mid-2023, with production tentatively slated for mid-2025.