PERTH (miningweekly.com) – Lithium miner Pilbara Minerals has reported a 16% increase in spodumene concentrate production for the three months to September, compared with the previous quarter.

Spodumene concentrate production for the September quarter reached 147 105 t, up from the 127 236 t produced in the previous quarter, with the Ngungaju plant achieving nameplate capacity of between 180 000 t/y and 200 000 t/y during the quarter.

Pilbara told shareholders on Tuesday that the strong production performance in the September quarter reflected the company’s operating strategy and represented an annualised production rate of 588 000 t of spodumene concentrate.

During the quarter under review, 138 249 t of spodumene concentrate was shipped, compared with the 132 424 t shipped in the June quarter, under existing offtake agreements and through spot sales, including via the company’s Battery Material Exchange digital sales platform.

Pilbara modified its production and marketing strategy by lowering its targeted product grade to optimise product yield, thereby maximising sales volumes in response to increasing demand. The average grade of product shipped during the quarter was 5.3% lithium oxide.

Meanwhile, expansion works to construct a primary rejection circuit to deliver an additional 100 000 t/y of spodumene concentrate production from the Pilgan plant started during the quarter. Works undertaken included bulk earthworks and the ordering of long-lead items.

Pilbara told sharehodlers that commissioning of the primary rejection circuit was expected to begin in the September quarter 2023, with ramp-up during the December quarter 2023. The new five-million-tonne-a-year crushing plant and ore sorting facility is expected to be completed and begin commissioning in December quarter 2023.

Once completed, the expansion is expected to increase the combined total production capacity for the Pilgangoora project to approximately 640 000 t/y to 680 000 t/y a year, earning the project the name of the P680 project.

During the quarter under review, Pilbara also continued to progress formal documentation for a joint venture (JV) to build a demonstration plant for the mid-stream project. Pilbara Minerals and Calix agreed core commercial terms in a binding memorandum of understanding in June 2022 and are now at the final stages of agreeing formal documents.

Pilbara and Calix expect to sign a formal JV agreement in the coming weeks for the mid-stream project, which is aimed at producing value-added lithium phosphate, a lower carbon energy intensity product for the battery materials industry. The JV will undertake studies for the construction of a demonstration-scale chemicals facility, with a final investment decision on this facility targeted for the March quarter of 2023.