<article><p class="lead">Perth-based lithium developer AVZ Minerals has completed a definitive feasibility study showing that its Manono project in the Democratic Republic of Congo can become one of the world's major sources of hard rock lithium.</p><p>The study supports the case for an initial 20-year mining operation that can produce 700,000 t/yr of high-grade lithium concentrate and 43,375 t/yr of primary lithium sulphate from existing ore reserves, the company said.</p><p>Around 153,000 t/yr of lithium concentrate grading 6pc lithium oxide will be used as feedstock for high-value primary lithium sulphate production.</p><p>Manono has the world's largest hard rock lithium resource of around 400mn t, with a measured and indicated resource of 269mn t grading 1.65pc lithium oxide, 816 parts per million tin and 36ppm tantalum. It has a proven ore reserve of 44.6mn t and a probable ore reserve of 48.5mn t on which the initial mining will be based, accessible through conventional open-pit mining.</p><p>Pre-production capital expenditure is estimated at $545mn, including a 10pc contingency, with average earnings before interest, tax, depreciation and amortisation expected at around $380 mn/yr. The project payback time is estimated at 1.5 years from first production.</p><p>Two transport routes have been priced through the port of Lobito in Angola ($229/t) and Dar es Salaam in Tanzania ($275/t).</p><p>Funding for the project still needs to be finalised, but initial project development works are advancing, including the construction of a mining camp on site.</p><p>AVZ Minerals is advancing offtake agreements and financing arrangements ahead of a final investment decision on the project.</p><p>The world's biggest hard rock lithium producers are located in Western Australia, while the biggest lithium brine producers are in Chile and Argentina.</p><p class="bylines"><i>By Angus Macmillan </i></p></article>
