Study underpins Manono lithium project in DRC

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.

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.

Around 153,000 t/yr of lithium concentrate grading 6pc lithium oxide will be used as feedstock for high-value primary lithium sulphate production.

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.

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.

Two transport routes have been priced through the port of Lobito in Angola ($229/t) and Dar es Salaam in Tanzania ($275/t).

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.

AVZ Minerals is advancing offtake agreements and financing arrangements ahead of a final investment decision on the project.

The world's biggest hard rock lithium producers are located in Western Australia, while the biggest lithium brine producers are in Chile and Argentina.

By Angus Macmillan