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Pilbara and Calix solidify JV ambitions

28th November 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Lithium miner Pilbara Minerals and fellow listed Calix have executed a formal joint venture (JV) agreement for a decarbonised lithium refining project in the Pilbara.

The formal JV agreement followed on from an earlier memorandum of understanding to support the development of a Mid-Stream lithium chemicals opportunity at Pilbara’s Pilgangoora operation, in Western Australia, and 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.

The JV will aim to develop a demonstration plant at the Pilgangoora project, to deliver a superior value-added lithium product enabling lower product cost, reduced carbon energy intensity and reduction of waste product logistics.

Participating interests in the JV will be 55% Pilbara Minerals and 45% Calix, with each party funding their share of operating and capital costs and Calix licensing their patented technology and calcination knowhow into the JV. Pilbara Minerals will manage the demonstration plant at the Pilgangoora project, overseeing both the construction and operational phases.

Calix will have a 10% in-kind contribution recognised on the budgeted estimated construction costs of the demonstration plant in return for providing an exclusive, worldwide, royalty-free licence for its calciner technology to the JV for lithium processing applications.

“It’s a great privilege to enter this JV partnership with Calix. The Mid-Stream project has the potential to be a game changer for our industry. If successful, we will be able to deliver a superior chemical intermediary product to market compared to spodumene concentrate,” said Pilbara Minerals MD and CEO Dale Henderson.

“This intermediate product offers a higher concentration in lithium and less impurities whilst being produced through a new process that reduces carbon dioxide (CO2) emissions compared to the traditional process route for hard rock spodumene chemical conversion.

“This is world-first Australian technology, being developed by two great Australian companies on Australian soil, with the support of the Australian government – this is an exceptional opportunity for all of us.”

Calix MD and CEO Phil Hodgson said the company was focused on decarbonising Australia’s essential industries, using its core technology’s ability to electrify industrial processing, and minimise the waste and CO2 footprint of minerals.

“We are excited to join forces with Pilbara Minerals and formalise our close working relationship built over the past 18 months. We will apply our combined capabilities to generate a more sustainable and valuable Australian lithium product,” he added.

A previous 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.

Pilbara Minerals on Monday said that to support a final investment decision (FID) in relation to the development of the demonstration plant, which is now targeted by the June quarter 2023, the parties have continued to progress engineering design work and feasibility studies for the demonstration plant and have commenced a market engagement programme following generation of market samples via a pilot test work programme completed in October.

This work will continue under the JV and will further support the final design of the Demonstration Plant leading up to the FID to proceed with its development.

The JV parties also continue to liaise with the Australian government to finalise the grant agreement for the A$20-million MMI grant awarded to the Mid-Stream project, and it is expected this grant agreement will be finalised before FID.

 

Edited by Creamer Media Reporter

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