Pilbara Minerals Ltd’s (ASX:PLS) definitive feasibility study (DFS) has confirmed robust economics for the stage 2, five million tonnes per annum (mtpa) expansion of its Pilgangoora Lithium-Tantalum Project in Western Australia.
The DFS has outlined a compelling case for the expansion of the project to proceed following the recent commissioning of the stage 1, 2 mtpa facility.
Planned Stage 2, 5 mtpa facility (3D model overlay)
The DFS indicates the Pilgangoora project will be a robust, high margin operation with current forecast life-of-mine revenue of $12.2 billion and life of mine project EBITDA of $6.3 billion over an estimated 17 year mine life.
DFS Key financial outcomes
Pilbara managing director and chief executive officer Ken Brinsden said: “We continue to be impressed by the quality and scale of the Pilgangoora project.
“The long life of the operation and its ability to deliver a high quality spodumene concentrate at a low cost to market is what sets us apart globally.
“This and our ability to rapidly scale-up spodumene concentrate production to over 800,000tpa plays perfectly into our downstream value adding strategy of continuing to grow with our customers, and supports the proposed joint venture with POSCO.”
Brinsden added: “The encouragement from our partners, General Lithium, Ganfeng Lithium, Great Wall Motors and POSCO, to expand our operations has been outstanding.
“These highly experienced partners know the market and their ongoing support, particularly with Stage 2 financing, is a clear demonstration of the strong future demand for lithium and the high quality of the Pilgangoora project”
Exciting news announced today with the successful production of the first coarse concentrates from the #Pilgangooraproject, with project commissioning on track for first shipment in August https://t.co/TfLGXMW8dj #lithium #spodumene #batteryminerals #tantalum pic.twitter.com/IGwGGgAZNk— PilbaraMinerals (@PilbaraMinerals) July 24, 2018