Economics improve for North Carolina lithium project

Market: Metals
07/08/19

Sydney- and Nasdaq-listed Piedmont Lithium has significantly improved the economics and expected life span of its vertically integrated Piedmont Lithium project in the US state of North Carolina.

An updated scoping study has extended the expected project life to 25 years from 13 years in the previous study. It is estimated that the project, which has a net present value of $1.5bn, will produce 22,700 t/yr of lithium hydroxide supported by mine and concentrator output of 160,000 t/yr of lithium concentrate grading 6pc lithium oxide. By-products will include quartz, feldspar and mica.

The project is seen producing lithium concentrate in the first two years of operation, followed by 23 years of lithium hydroxide, the preferred cathode material for electric vehicle battery manufacturers because of its energy density.

Cash costs of lithium hydroxide production are expected to average $3,105/t with lithium concentrate cash costs estimated at $199/t, making the project one of the world's lowest-cost downstream lithium producers.

The project is expected to produce around 489,000t of lithium hydroxide over the course of its 25-year life, compared with 216,000t in the previous scoping study. Lithium concentrate output is estimated at 3.8mn t, compared with 1.96mn t previously.

As the project heads towards the feasibility stages, the focus is now on securing permits and approval for open-pit mining and producing concentrate, advancing the development of a lithium hydroxide plant, and formalising discussions with strategic, technical and offtake partners.

"We will continue to progress our mine and concentrator through the pre-feasibility and feasibility study processes but will now redouble our efforts on the strategic front by accelerating our lithium hydroxide test work and intensifying strategic discussions we have had with a broad array of potential strategic, offtake and financial partners," chief executive Keith Phillips said.

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