Piedmont eyes North Carolina lithium plant

Sydney- and Nasdaq-listed lithium developer Piedmont Lithium has unveiled plans for a major vertically integrated lithium production facility in the US state of North Carolina.

A completed scoping study supports the case for a 13-year mine life operation that will produce 22,700 t/yr of lithium hydroxide from an open pit mine and concentrator producing 170,000 t/yr of 6pc lithium oxide spodumene concentrate.

The Piedmont project in the Carolina tin-spodumene belt is predicted to produce 1.95mn t of spodumene concentrate over the life of the mine, although there is potential for resource expansion. The project has an existing mineral resource of 16.2mn t grading 1.12pc lithium oxide.

The project will be developed in stages and is expected to meet some of the strategic needs for domestic US lithium production, the company said. The hydroxide plant is expected to operate from year three of the 13-year project.

The first stage will comprise the development of the open pit mine and concentrator at a cost of around $91mn. The second stage, including the hydroxide chemical plant, will be funded by internal cash flows. The cost of the hydroxide plant is estimated at $252mn.

Study estimates show that the project can sustain low lithium hydroxide costs of $3,960/t, putting in the lowest 25pc of global producers.

An after-tax margin of around $8,900/t, or 64pc, is expected to be achieved. A project payback period of two years is predicted, with earnings before interest, tax, depreciation and amortisation estimated at $220 mn/yr.

The next step for the project is a pre-feasibility study, which is expected to be completed in early 2019. This will include metallurgical studies to evaluate the potential of installing a dense media separation plant before the flotation circuit to reduce concentrator operating costs. The potential of by-product mica, fluorspar and quartz production will also be examined.