Name of the Project
Piedmont lithium hydroxide chemical project.

Location
The project is located in North Carolina, in the US.

Project Owner/s
Piedmont Lithium.

Project Description
A new scoping study has demonstrated the project’s strong commercial potential.

The project has mineral resources estimated at 27.9-million tonnes grading 1.11% lithium oxide, compared with 16.2-million tonnes grading 1.12% in the 2018 scoping study.

The 2019 study includes a steady-state 22 700 t/y lithium hydroxide chemicals plant, supported by a mine/concentrator producing 160 000 t/y of 6% lithium oxide spodumene concentrate. Quartz, feldspar and mica by-products will provide credits for the cost of lithium production.

The project’s mine life has increased from 13 years in the 2018 scoping study to 25 years in the 2019 scoping study.

The chemicals plant has a life of 23 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The current scoping study estimates an after-tax net present value, at an 8% discount rate, of $1.45-billion and an internal rate of return of 34%.

The payback for the mine/concentrator is estimated at 2.4 years and the chemicals plant 2.4 years.

The 2018 scoping study estimated after-tax net present value, at an 8% discount rate, of $888-million and an internal rate of return of 46%.

Capital Expenditure
The current scoping study estimates initial capital expenditure at $168-million, compared with $130-million in the 2018 scoping study.

Planned Start/End Date
The construction of the mine and the chemicals plant will happen concurrently and first production is targeted for late 2022.

Latest Developments
Piedmont Lithium plans to start construction on its lithium hydroxide chemical project in early 2021.  

Construction should take between 12 and 18 months to complete and will start once the company’s permitting and feasibility processes have been finalised.

Piedmont applied for its mine’s federal permits in December last year, which should be granted before the end of this year, while the chemical plant is undergoing a different permitting process that started in September.

The process is expected to take about 12 months.

The company is, meanwhile, progressing infill drilling to declare a reserve as part of a feasibility study, informed by a scoping study that was published in August. Chemical conversional testwork to produce lithium hydroxide will start in October.

The company is continuing discussions with potential offtake partners. The company expects at least three-quarters of its supply to be sold under offtake agreements to “four to five main customers”, including cathode and battery companies, as well as automotive companies, with a focus on European and North American battery supply chains.

Key Contracts and Suppliers
Primero Group (process engineering and infrastructure); SGS Lakefield (metallurgical testwork); Marshall Miller and Associates (mine design and scheduling); CSA Global (resource estimation); HDR Engineering (permitting, environment, and social studies); Johnston, Allison, and Hord (land title and legal); Roskill (lithium products marketability); and CSA Global (by-products marketability).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Piedmont Lithium, tel +61 8 9322 6322 or email info@piedmontlithium.com.