Ann: Pilbara Minerals Finalises Agreements for POSCO DSJV, page-107

https://thewest.com.au/business/mining/pilbara-locks-in-downstream-deal-with-posco-ng-b882052505z
Pilbara locks in downstream deal with Posco

Stuart McKinnonThe West Australian
Tue, 26 October 2021 10:35AMComments
Stuart McKinnon


Workers at the Pilgangoora spodumene processing plant.


Pilbara Minerals has finalised an agreement with South Korean industrial giant Posco that will give the miner exposure to the refined value of its lithium concentrate.

The two companies have agreed to pursue the development of a 43,000tpa lithium hydroxide processing facility in South Korea, with commissioning expected from the September quarter of 2023.

Under the terms of the joint venture, Pilbara will initially hold an 18 per cent interest in the joint venture, funded largely from a previously announced $79.6M vonvertible bond agreement with Posco.

However a call option would allow Pilbara to increase its interest in the joint venture to 30 per cent for a period up to 18 months after the successful ramp up of the conversion facility.

Pilbara’s managing director Ken Brinsden said the joint venture would give the company significant exposure to one of the world’s most dynamic and fastest growing markets for lithium chemicals.
“Production is expected to commence from the second half of 2023, which should coincide with burgeoning global lithium chemicals demand,” he said.

Under an offtake agreement, Pilbara will supply 315,000tpa of spodumene concentrate to the plant at market pricing for 20 year or the life or the life of Pilgangoora.

The joint venture will also provide a $US25m offtake pre-payment facility to Pilbara to fund general working capital and future expansions of Pilgangoora.

Shares in Pilbara jumped 13.5¢, or 6.5 per cent, to 2.225 at 10.30am.