Mali lithium project targets 16 year mine life
Africa's largest lithium development project has declared its maiden ore reserve which is expected to support an initial mine life of 16 years.
The ore reserve of 31.2mn t grading 1.56pc lithium oxide at Perth-based Birimian's Goulamina project in Mali, West Africa, is estimated to be able to support production of 362,000 t/yr of lithium concentrate, or 53,704 t/yr of lithium carbonate equivalent (LCE).
An updated pre-feasibility study indicates that the project can produce 5.7mn t of concentrate over 16 years through the processing of 2mn t/yr of ore.
The updated study shows that concentrate can be produced at an average cost of $281/t fob the port of Abidjan in Cote d'Ivoire, making it one of the world's lowest-cost hard rock lithium producers.
The study is based on a long-term lithium concentrate price of $666/t. Capital expenditure for the project is estimated at $147mn. Project net present value is $690mn with average earnings before interest, tax, amortisation and depreciation of $128mn/yr.
"Our ability to satisfy the long-term requirements of strategic offtake partners is clearly demonstrated," chief executive Greg Walker said, adding that there is potential to increase life of mine output by accessing inferred resources within the overall mineral resource of 103mn t.
A definitive feasibility study will now be undertaken to advance the project.
The Goulamina project has overtaken Prospect Resources' Arcadia project in Zimbabwe as Africa's largest lithium development project.
Related news posts
US economic growth slows to 1.6pc in 1Q
US economic growth slows to 1.6pc in 1Q
Houston, 25 April (Argus) — The US economy in the first quarter grew at a 1.6pc annual pace, slower than expected, while a key measure of inflation accelerated. Growth in gross domestic product (GDP) slowed from a 3.4pc annual rate in the fourth quarter, the Bureau of Economic Analysis (BEA) reported on Thursday. The first-quarter growth number, the first of three estimates for the period, compares with analyst forecasts of about a 2.5pc gain. Personal consumption slowed to a 2.5pc annual rate in the first quarter from a 3.3pc pace in the fourth quarter, partly reflecting lower spending on motor vehicles and gasoline and other energy goods. Gross private domestic investment rose by 3.2pc, with residential spending up 13.9pc after a 2.8pc expansion in the fourth quarter. Government spending growth slowed to 1.2pc from 4.6pc. Private inventories fell and imports rose, weighing on growth. The core personal consumption expenditures (PCE) price index, which the Federal Reserve closely follows, rose by 3.7pc following 2pc annual growth in the fourth quarter, although consultancy Pantheon Macroeconomics said revisions to the data should pull the index lower in coming months. The Federal Reserve is widely expected to begin cutting its target lending rate in September following sharp increases in 2022 and early 2023 to fight inflation that surged to a high of 9.1pc in June 2022. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia's MinRes posts higher 1Q spodumene output
Australia's MinRes posts higher 1Q spodumene output
Singapore, 25 April (Argus) — Perth-based major lithium and iron ore producer Mineral Resources (MinRes) has reported higher total spodumene concentrate output from its sites in January-March, and higher spodumene prices later in the quarter. Total attributable spodumene concentrate production of the firm across its assets rose to 170,000 dry metric tonnes (dmt) (see table for detailed breakdown), up by 3.7pc on the quarter and by 63pc on the year, according to the firm's latest quarterly activity report. Total attributable spodumene concentrate shipped volumes fell by 2.9pc on the quarter but rose by 50pc on the year to 166,000dmt. MinRes has an ambitious target of 1mn t/yr of lithium attributable within the next four years, said its managing director Chris Ellison last month during the firm's half-year results presentation. The firm has been aggressively expanding, several delegates told Argus at the Tribeca Future Facing Commodities conference held in Singapore on 26 March. The firm last month agreed to buy fellow developer Poseidon Nickel's concentrator plant in Western Australia as it seeks to retrofit it for lithium processing. MinRes' Mount Marion site saw higher output, driven by higher plant utilisation and improved ore recoveries as the firm continues to advance its plant improvement initiatives. The realised price for spodumene concentrate out of its Mount Marion site was at $718/dmt on a 4.2pc-grade basis, which was above the product's year-to-date fob costs of A$518/dmt ($338/dmt). The realised price translates to $1,048/dmt for 6pc-grade lithium concentrate (spodumene), said the firm. The firm did not process the spodumene concentrate produced from its Wodgina site during the quarter into lithium battery chemicals, citing "prevailing pricing dynamics", but instead resumed spodumene concentrate spot sales. The realised spodumene concentrate price at the site came in at $974/dmt on 5.6pc-grade basis, which translates to $1,028/dmt for 6pc-grade lithium concentrate (spodumene). The lithium battery chemical realised price, excluding value added tax, came in at $11,098/t. MinRes in November 2023 finalised the acquisition of the Bald Hill lithium mine from Alita Resources. January-March was the mine's first full production quarter, hence output was dragged down by limited availability of higher-grade feed, but this is expected to recover in April-June, said the firm. The realised spodumene concentrate price at the Bald Hill site was $878/dmt on 5.1pc-grade basis, which translates to $1,016/dmt for 6pc-grade spodumene concentrate. Argus -assessed prices for 6pc grade spodumene concentrate dipped to $1,080-1,180/t cif China on 23 April, from $1,100-1,200/t cif China a week earlier. Salts producers reduced spodumene bid prices because of a fall in salts prices two weeks earlier. By Joseph Ho MinRes lithium performance Jan-Mar '24 Oct-Dec '23 Jan-Mar '23 Spodumene concentrate production (k dmt) Mt Marion (50pc attributable basis) 91 83 60 Wodgina (50pc attributable basis) 49 55 44 Bald Hill (100pc attributable basis) 30 26 NA Total 170 164 104 Spodumene concentrate shipments (k dmt) Mt Marion (50pc attributable basis) 76 86 62 Wodgina (50pc attributable basis) 64 65 49 Bald Hill (100pc attributable basis) 26 20 NA Total 166 171 111 Lithium battery chemical (t) Wodgina production (50pc attributable basis) 6,793 6,798 3,246 Wodgina sales (50pc attributable basis) 6,954 6,474 1,504 Source: MinRes MinRes previously owned 40pc of the Wodgina project, which increased to 50pc starting from 18 October 2023. Figures for Wodgina before 18 October 2023 were on 40pc attributable basis. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EV demand slowdown cuts S Korea’s LGES' profit in 1Q
EV demand slowdown cuts S Korea’s LGES' profit in 1Q
Singapore, 25 April (Argus) — South Korea's top battery manufacturer LG Energy Solution (LGES) reported significant lower revenue and profit in January-March, because of lower battery metal prices and slower electric vehicle (EV) demand. LGES' revenue in January-March fell by 23pc on the quarter and 30pc on the year to 6.13 trillion won ($4.46bn), owing to lower demand for EV pouch cells and energy storage system (ESS), with "prolonged metal price impact" affecting its average selling price. The firm reported W157bn of operating profit in January-March, but would have reported an operating loss of W32bn if it did not receive almost W189bn in US Inflation Reduction Act (IRA) tax credits. But this was still a sharp drop from W633bn of operating profit for January-March 2023. The lower revenue and a demand slowdown in the EV market led to utilisation rate adjustments that weighed on its financial performance. The firm reaped a net profit of W212bn during the quarter, which was up by 12pc on the quarter but down by around 62pc on the year, likely significantly propped up by the US' IRA tax credits. LGES said it will continue to invest despite the difficult market environment, but will "adjust" the size of its capital expenditure and execution speed "as per priority". Battery project updates LGES and automaker General Motors in early April completed the first battery shipment out of their second Ultium battery cell factory in US' Tennessee. The plant's capacity is expected to gradually expand to 50 GWh/yr, said LGES. Construction progress at the firm's battery manufacturing complex in US' Arizona is also on track, said the firm. Ramped up capacity is expected to be 53 GWh/yr, which will comprise 36 GWh/yr of 46-series cylindrical battery for EVs and 17 GWh/yr of lithium-iron-phosphate battery for ESS. LGES' 10 GWh/yr Indonesian battery production joint venture with South Korean conglomerate Hyundai Motor has also started mass production. Its battery module production joint venture with automaker Stellantis in US' Ontario, which encountered a halt in construction in May last year, will start operations in the second half of 2024. The factory has a planned capacity of 45GWh/yr and was supposed to begin operations early this year. LGES earlier this year inked a second agreement with Australian firm Wesfarmers Chemicals, Energy and Fertilisers for lithium concentrate supply. The firm will continue building a raw materials supply chain within regions that have a free trade agreement with US, it said. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Barge delays at Algiers lock near New Orleans
Barge delays at Algiers lock near New Orleans
Houston, 24 April (Argus) — Barges are facing lengthy delays at the Algiers lock near New Orleans as vessels reroute around closures at the Port Allen lock and the Algiers Canal. Delays at the Algiers Lock —at the interconnection of the Mississippi River and the Gulf Intracoastal Waterway— have reached around 37 hours in the past day, according to the US Army Corps of Engineers' lock report. Around 50 vessels are waiting to cross the Algiers lock. Another 70 vessels were waiting at the nearby Harvey lock with a six-hour wait in the past day. The closure at Port Allen lock has spurred the delays, causing vessels to reroute through the Algiers lock. The Port Allen lock is expected to reopen on 28 April, which should relieve pressure on the Algiers lock. Some traffic has been rerouted through the nearby Harvey lock since the Algiers Canal was closed by a collapsed powerline, the US Coast Guard said. The powerline fell on two barges, but no injuries or damages were reported. The wire is being removed by energy company Entergy. The canal is anticipated to reopen at midnight on 25 April. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more