Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed lithium miner Pilbara Minerals on Tuesday said that production and sales are expected to return to full capacity during the December quarter, based on the latest discussions with its customers.
Pilbara last month told shareholders that production from the Pilgangoora project, in Western Australia, would be cut back during June and July, on the back of constrained sales during the June quarter.
In the three months to June, the Pilgangoora project produced 62 334 t of spodumene concentrate, with Pilbara shipping 43 214 t.
Pilbara told shareholders that sales during the September quarter are expected to reach between 35 000 t and 48 000 t, with the demand to be met from a combination of existing concentrate stocks and future production.
Supported by agreed delivery schedules with key customers, sales are also expected to more closely align with full plant production from October 1, with Pilbara expecting sales for the December quarter to reach between 65 000 t and 80 000 t.
Furthermore, sales in the second half of the year will also be strengthened by additional offtake agreements that were recently signed with China’s Great Wall Motor Company, with deliveries under that contract set to start in August at a rate of 20 000 t/y, and continue for a period of six years.
Sales volumes to Great Wall are expected to range between 15 000 t to 20 000 t during the second half of the 2019 calendar year, Pilbara said.