Sayona eyes integrated lithium hub in Quebec

Brisbane-based Sayona Mining is hoping to integrate its Authier lithium project with the operations of North American Lithium to create a hub of lithium extraction and downstream processing in Canada's Quebec province.

It plans to participate in the bidding process for the assets of North American Lithium, for which the Quebec superior court has started invited offers. Synergies and the potential for operational improvements are seen for integrating the two operations.

North American Lithium halted production at its La Corne mining and processing operation in February as a result of concentrate prices sliding to $600/t from $900/t in early 2018. It produced 114,000t of concentrate in 2018 compared with a nameplate capacity of 180,000t.

"North American Lithium's operation has unrealised potential," Sayona managing director Brett Lynch said, adding that there is potential to produce downstream lithium carbonate if the necessary investment is made. "Quebec needs a successful operation at North American Lithium, and we are keen to lead a turnaround plan."

Sayona will next month release a revised definitive feasibility study for its Authier project. It is also revising its environmental impact statement to reflect community feedback.

Existing feasibility investigations have indicated that Authier can sustainably produce 2,600 t/d of lithium concentrate for output of 115,000 t/yr over a period of 14 years.

An independent study shows that Quebec can become a significant player in the North American lithium-ion battery sector because of its resources and access to Canadian and US markets.