Name of the Project
Pilgangoora lithium/tantalum expansion project.

Location
Western Australia.

Client
Pilbara Minerals.

Project Description
A prefeasibility study has outlined a compelling business case for starting the expansion of the Pilgangoora lithium/tantalum project at five-million tonnes a year of run-of-mine ore production and processing capacity within months of starting the production of spodumene concentrate from the two-million-tonne-a-year Stage 1 operation.

The project has proven and probable reserves of 80.3-million tonnes grading 1.27% lithium oxide (Li₂O), 123 parts per million of tantalum pentoxide (Ta₂O₅) and 1.08% iron oxide.

The plant expansion will entail modifications to expand the existing Stage 1 circuit to 2.5-million tonnes a year (Train 1), and the construction of a similar 2.5-million-tonne-a-year circuit (Train 2) to achieve a total nameplate capacity of five-million tonnes a year.

Production of about 800 000 t/y of high-quality spodumene concentrate is expected once the plant has achieved nameplate capacity of five-million tonnes a year.

The flowsheet has been designed to target two product streams – chemical-grade spodumene at 6% Li₂O and low iron; and tantalite concentrate at 25% to 30% Ta₂O₅.

Tailings are expected to be produced at 65% to 68% solids concentration at 4.25-million tonnes a year (Stage 2) for the life-of-mine, with the total storage requirement increasing from 58.8-million tonnes to 68.3-million tonnes.

The tailings management facility will be expanded by increasing the height of cells 1, 2 and 3 on the original integrated waste landform design on a staged basis.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The Stage 2 expansion project has an after-tax net present value, at a 10% discount rate, of A$2.1-billion and an internal rate of return of 56%, with a payback of three years.

Value
Stage 2 has a capital development estimate of A$207-million.

Duration
Construction is expected to start by the fourth quarter of 2018 and commissioning from the fourth quarter of 2019.

Latest Developments
Commercial production has been declared at Stage 1 of the Pilgangoora project, with Pilbara Minerals also looking for a partner to invest at the project level.

Pilbara is now working on fine-tuning and balancing several aspects at the plant to achieve recovery levels of 75% while working towards achieving 100% of the production design capacity of two-million tonnes a year during 2019.

Meanwhile, Pilbara has started the partnering process to consider offtake for the Stage 3 development of the project following a positive scoping study into the expansion.

The Stage 3 expansion will increase output at Pilgangoora, from the Stage 2 production of between 800 000 t/y and 850 000 t/y of high-quality spodumene concentrate, to about 1.2-million tonnes a year of spodumene concentrate and 1.1-million pounds a year of 3% tantalite concentrate by enlarging the processing capacity to 7.5-million tonnes a year.

The Stage 3 operation is expected to have a mine life of about 15 years, based on the existing reserves.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Pilbara Minerals, tel +61 8 6266 6266 or fax +61 8 6266 6288.