Name of the Project
Rhyolite Ridge lithium/boron project.

Location
Nevada, US.

Project Owner/s
In September 2021, Sibanye-Stillwater entered into an agreement with ioneer to establish a joint venture (JV) company with respect to Rhyolite Ridge. Following the satisfaction or waiver of all conditions precedent, Sibanye-Stillwater will acquire a 50% interest in the JV, with ioneer maintaining a 50% interest and retaining the operational management responsibility for the JV.

Project Description
A definitive feasibility study (DFS), completed in April 2020, has placed Rhyolite Ridge as the single-most attractive project for the production of lithium carbonate, lithium hydroxide and boric acid globally.

The lithium and boron mineral resource is estimated at 146.5-million metric tonnes, including an ore reserve of 60-million metric tonnes, an increase in the reserve from the previous estimate of 280% over the 26-year life-of-mine (LoM).

The mine plan comprises almost entirely reserve material, with nearly 50% of that being proven ore reserves.

The resource remains open in three directions, allowing for a potential extension to the LoM.

The project will mine 2.5-million metric tons a year of ore over the LoM to produce about 20 600 t/y of lithium carbonate, or about 22 000 t/y of lithium hydroxide and 174 400 t/y of boric acid, on average.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% real discount rate, of $1.265-billion and an unlevered internal rate of return of 20.8%, with a payback of 5.2 years from the start of first production.

Capital Expenditure
The DFS estimates that the total capital expenditure to complete the project will be $785-million, including an 8% contingency.

This represents an increase of $186-million from the PFS.

Planned Start/End Date
ioneer expects to start production in 2025 to support urgent requirements for battery materials in the US.

Latest Developments
Sibanye-Stillwater reports that a subsidiary of ASX-listed ioneer – its proposed joint venture (JV) partner at the Rhyolite Ridge lithium/boron project – has received a conditional commitment for a proposed loan of up to $700-million from the US Department of Energy (DoE) to support the development of the project.

The proposed loan is to be made under the DoE Loan Programs Office’s Advanced Technology Vehicles Manufacturing (ATVM) loan programme, which aims to support the Biden-Harris Administration’s critical minerals strategy, including domestic US production of critical minerals.

If completed, the proposed loan would be the first-ever by the DoE to provide financing for the processing component of a project where lithium is extracted and refined on site.

The proceeds from the proposed loan and Sibanye's expected equity contribution to secure its 50% stake in Rhyolite Ridge – once all conditions precedent for completion of the JV have been fulfilled or waived, as applicable – are expected to fund a substantial part of the preliminary project capital.

The proposed loan remains subject to negotiation and documentation of long-form agreements and various conditions, and may be revised to match updated project economics leading up to financial close after certain condition have been met.

"If finalised, this loan will ensure that the project can be swiftly advanced once the necessary permits have been granted and the outstanding conditions fulfilled. This is a significant milestone in the development of Rhyolite Ridge, which promises to positively contribute to reducing climate change,” Sibanye CEO Neal Froneman has said.

Key Contracts, Suppliers and Consultants
Fluor (DFS).

Contact Details for Project Information
ioneer, tel +61 2 9922 5800.
Sibanye-Stillwater, tel +27 11 278 9600 or email  ir@sibanyestillwater.com.