PERTH (miningweekly.com) – Lithium developer Pilbara Minerals has inked a binding memorandum of understanding (MoU) with fellow-listed Calix supporting the development of the Mid-Stream lithium chemicals opportunity at Pilbara’s Pilgangoora operation, in Western Australia.

The MoU followed the award of a A$20-million grant from the Australian government earlier this year under the Modern Manufacturing Initiative (MMI) to help fund the Mid-Stream project.

“Execution of the binding MoU with Calix further cements the great relationship developing between the two companies. Our common goal - to further decarbonise lithium raw material supply chains - is both an important overall objective and a key deliverable for the value in future Mid-Stream products,” said Pilbara MD and CEO Ken Brinsden.

A recently completed scoping study into the Mid-Stream project provided preliminary support for the construction of this facility. The study, undertaken by ASX-listed Lycopodium Minerals, confirmed the technical viability of the Mid-Stream project to deploy a novel calcination technology and integrated chemical concentration process at the Pilgangoora operation to produce a new end-product, with the preferred product at this stage of study being lithium phosphate salt.

Under the terms of the MoU, the two companies would now progress front-end engineering design beyond the completed scoping study, to support a final investment decision on a demonstration plant by early 2023.

The two companies would also generate market samples from pilot test work programmes, and would negotiate a formal joint venture agreement for the funding and development of the demonstration plant and a potential future commercialisation pathway.

“Our work with Pilbara Minerals continues on a great footing with key terms now agreed on the joint venture (JV) to develop, demonstrate, and ultimately, commercialise a new, low carbon lithium salt production process. I look forward to the next phases of the project, namely execution of a formal JV agreement during the third quarter of 2022, and front-end engineering design leading to a final investment decision in early 2023,” said Calix MD and CEO Phil Hodgson.

Meanwhile, Pilbara Minerals on Wednesday also announced the appointment of Dale Henderson as the company’s new CEO and MD, replacing Brinsden, who in February flagged his intention to step down from the role.

Henderson has held the role of COO with Pilbara since 2017, and was selected from a field of candidates, Pilbara said in a statement.

Brinsden will formally step down as MD on July 30, however, he will work closely with Henderson over the next two months to ensure a smooth and effective transition.

“We are delighted that Henderson has accepted the board’s offer to become Pilbara Minerals’ next MD and CEO, following an exhaustive international search process that yielded some outstanding candidates,” said Pilbara chairperson Tony Keirnan.

“Henderson is an exceptional, high-calibre individual who has already made his mark at Pilbara Minerals over the past five years as COO. Apart from his strong leadership skills and extensive technical and operational experience, Henderson has a deep understanding of our current operations, the importance of maintaining the company’s well-developed culture and work practices, and a clear understanding of the global lithium supply chain and Pilbara Minerals’ role in the future of this exciting industry.”