Ann: FID to Increase Pilgangoora Production Capacity, page-32

https://thewest.com.au/business/min...pilgangoora-lithium-plant-expansion-c-7337886

Pilbara says go on $300m Pilgangoora lithium plant expansion

Stuart McKinnonThe West Australian
Wed, 29 June 2022 10:28AM
Stuart McKinnon


A stockpile of spodumene at Pilbara's Pilgangoora operation. Credit: Pilbara Minerals


Pilbara Minerals has highlighted the booming demand for lithium after pushing the button on a $297.5 million upgrade of its Pilgangoora plant and banking more than $500 million in the June quarter from its operations.

The Dale Henderson-led miner said it would self-manage delivery of the project that will boost production by 100,000 tonnes of lithium concentrate per annum to 680,000tpa to help mitigate cost and schedule overruns amid WA’s tight labour market and inflationary environment.

Pilbara said the investment supported its long-term growth strategy to incrementally increase production capacity at Pilgangoora in line with customer and market demand.

Mr Henderson said the increase in production capacity would enable the company to continue to capitalise on the opportunities in the lithium chemicals market, being driven by rapid transition to decarbonisation through technologies such as electric vehicles and battery storage.

“The increase in production from the Pilgangoora project will coincide with the expected commissioning and ramp-up in production from the downstream chemical conversion plant being constructed under our joint venture with POSCO, which will see Pilbara become a fully integrated lithium raw materials company,” he said.


Pilbara Minerals managing director Dale Henderson. Credit: DAVID BROADWAY/TheWest

The investment comes after aspiring lithium miner gave the green light for its Kathleen Valley lithium project near Leinster after locking in $300m in debt funding from US auto giant Ford.

It also follows Pilbara flagging a 54 per cent jump in output from Pilgangoora in the June quarter to 123,000-127,000 tonnes.

The higher production, along with stronger pricing, drove a $565m jump in the company’s estimated June 30 cash position to $850m-$855m.

The stronger pricing was highlighted by the company’s most recent spot cargo auction of lithium concentrate last week, which achieved a record price of $US7017 per dry metric tonne.

The all-time high price achieved in Pilbara’s seventh such auction flies in the face of suggestions by some commentators that the lithium market has peaked and is set to be oversupplied.
However Pilgangoora was hit with a significant jump in operating costs in the quarter with the company citing higher diesel, reagent and labour costs in the quarter.

Pilbara expects to report unit costs of $650-$680/t in the June quarter, up from guidance released in late April of $490-$530/t.

Shares in Pilbara were off 2.5¢, or 1 per cent, to $2.365 at 10.25am.