Lithium, tantalum: Pilbara Minerals announces Stage 3 expansion plans and begins commercial production

Posted on 8th April 2019 in General News.

Australian lithium and tantalum developer Pilbara Minerals announced the start of commercial production from 1^st April 2019 following six months of ‘sustained output and quality’ of spodumene concentrate during its Stage 1 project at the Pilgangoora operation. A total of 111kdmt (16,500t LCE assuming 6.0% Li₂O grade) of saleable product has been produced to-date and Pilbara expects Q1 2019 production to be in the range of 47-52kdmt. Processing plant feed rates have met the target of 270tph of processed ore. The company plans to continue capacity ramp-up to reach full nameplate capacity later in 2019.

In November last year, Pilbara Minerals reported its intention to proceed with a Stage 2 expansion at Pilgangoora with commissioning scheduled for Q4 2019. The expansion could see spodumene mining increase from 2Mtpy (Stage 1) to 5Mtpy and by-product tantalum production increase from 146tpy Ta₂O₅ to 363tpy Ta₂O₅, subject to regulatory approvals. A definitive feasibility study, released in August 2018, costed this expansion at A$231M (US$167M). Pilbara is now considering a Stage 3 expansion that would take total capacity to 7.5Mtpy and almost 500tpy Ta₂O₅. Pilbara is now exploring options for the financing of Stage 3, which carries an incremental cost of A$226M (US$163M), including potential off-take backed financing.

The proposed Stage 3 expansion supports Pilbara’s further participation in downstream lithium chemicals facilities including the 40kt LCE downstream lithium hydroxide joint venture plant proposed with POSCO in Korea, which Roskill reported on last month. The JV plant would be supplied with spodumene imported from Pilgangoora and makes use of POSCO’s proprietary PosLX technology. Based on similar-sized plants costing around US$500M, Pilbara would need to raise around US$150M to cover its share. Pilbara is also evaluating potential participation in a second lithium chemical conversion facility, with the scoping and location study identifying several Australian and international locations as economically viable.

To discuss the lithium market with Roskill, contact David Merriman: [email protected] or Robert Baylis: [email protected]

To discuss the tantalum market with Roskill, contact Suzanne Shaw: [email protected]