Name of the Project
Whabouchi lithium mine and Shawinigan electrochemical plant.

Location
The mine will be located in the Eeyou Istchee James Bay territory, in Quebec, and the concentrator at the hydrometallurgical (hydromet) plant in Shawinigan, Quebec, Canada.

Project Owner/s
Nemaska Lithium was sold to a group comprising Orion Mine Finance, Investissement Québec (IQ) and Pallinghurst, acting through a new entity named Quebec Lithium Partners (QLP), in October 2020. Nemaska Lithium ran into financial trouble developing the mine and associated electrochemical plant, facing project cost overruns.

Nemaska Lithium entered creditor protection in December 2019 and accepted a sale and proposal structured as a credit bid from Orion Mine Finance, IQ and Pallinghurst in August 2020.

In November 2020, New York-listed Livent announced that it would invest in New Nemaska Lithium through a joint venture with investment manager Pallinghurst Group, with both companies set to equally own QLP.

QLP owns a 50% equity ownership in the newly established New Nemaska, which will continue with the development of the Whabouchi project. The remaining 50% will be owned by IQ. 

Project Description
The project has openpit and underground proven and probable reserves of 37-million tonnes at 1.40% lithium oxide.

The 2018 feasibility study outlines a combined openpit and underground mine with a 33-year mine life, concentration facilities, tailings and water management at the mine, as well as an electrochemical plant, in Shawinigan.

Over the life-of-mine, the mine is expected to produce seven-million tonnes of spodumene concentrate, which will be converted into 770 000 t of battery-grade lithium hydroxide and 361 000 t of battery-grade lithium carbonate.

During the first 23.6 years, production will be derived from an openpit developed to a maximum depth of 224 m with an average strip ratio of 2.95:1. The openpit will be mined using a standard fleet of off-road mining trucks and hydraulic excavators at 2 830 t/d of ore.

During the past 9.4 years, ore production will be derived from an underground operation at 3 665 t/d and accessed through a ramp in the openpit. The underground development will reach an average depth of 55 m below the pit bottom. The selected underground mining method is longhole stoping, with the crown pillar below the pit recovered at the end of the mine life.

The feasibility study includes the addition of an ore-sorting circuit at the mine. Additional equipment and buffer zones have also been added throughout the process at both sites to increase operability, while enhancing process reliability and ongoing maintenance without disrupting operations have ensured optimal performance.

The electrochemical processing plant’s capacity has been increased by 20%, from 27 000 t/y lithium carbonate equivalent (LCE) to 33 000 t/y LCE.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The feasibility study shows a base case pretax net present value, at an 8% discount rate, of C$3.3-billion and an internal rate of return of 34.4%, with an after-tax payback of 2.9 years.

Capital Expenditure
Initial capital costs were estimated at C$874.4-million; however, the company announced in February this year that it would need an additional C$375-million to complete the project.

Planned Start/End Date
Construction mobilisation started in the third quarter of 2016.

Concentrator commissioning is expected to start in the second quarter of 2019 and commercial production in the fourth quarter.

The electrochemical plant is expected to start commissioning in the first quarter of 2020, with commercial production expected to start in the fourth quarter.

Latest Developments
Pallinghurst, together with IQ, intends to invest up to C$600-million in New Nemaska Lithium (including amounts paid to Orion) for the lithium mine and electrochemical plant, after closing and once the required approvals are in place.

Key Contracts, Suppliers and Consultants
Nemaska was forced to set a new pace for construction at the mine in February this year after a project cost blow-out left it short of cash.

Contact Details for Project Information
Nemaska Lithium, tel +1 418 704 6038 or email info@nemaskalithium.com.